A fresh push for longer home loans is stirring debate, with radio host Ken Coleman weighing in on a proposal for 50-year mortgages linked to the Trump administration. The conversation played out on the show The Bottom Line, where the Ramsey personality addressed the idea and its impact on buyers, lenders, and the housing market.
The concept is simple. Stretch the mortgage term to shrink the monthly payment. The results are not. Extending loans to 50 years would change how Americans build equity, how banks manage risk, and how prices react in tight markets.
“‘The Ramsey Show’ co-host Ken Coleman gives his take on the Trump administration’s 50 year mortgage idea on ‘The Bottom Line.’”
Why Longer Mortgages Keep Coming Back
Ultra-long mortgages surface whenever affordability gets squeezed. Higher interest rates and low housing supply push buyers to seek relief on monthly costs. For policymakers, a longer term looks like an easy lever.
Other countries have tested the idea. Japan once saw multi-generational loans during a property boom. Some European markets allow 40-year terms today. The trade-off is common across borders. Lower monthly payments now, much more interest over time.
In the U.S., most borrowers use 30-year fixed loans. A few lenders offer 40-year products, often for specialized cases like loan modifications. A 50-year mortgage would be a wider shift.
What It Means for Buyers
A 50-year term lowers the monthly payment by spreading principal over more years. That can help first-time buyers qualify. It can also keep buyers in expensive markets from stepping out entirely.
The downside is steep. Total interest paid rises sharply. Equity builds slowly. Homeowners risk staying underwater longer if prices dip early in the loan. That can trap families if they need to sell or move.
Budgeting discipline becomes even more important. Extra principal payments can speed up payoff, but many households struggle to make them consistently.
Market Impact and Bank Risk
For lenders, longer terms change the math. Loans last longer on the books. Interest-rate risk grows. Servicing costs stretch out, and prepayment patterns get harder to predict.
Investors in mortgage-backed securities would need higher confidence in long-dated cash flows. That could make these loans pricier, reducing the payment relief that makes them attractive in the first place.
Regulators would also weigh in. Capital rules, stress tests, and consumer protections would shape how any 50-year product is designed and offered.
Could Longer Loans Lift Prices?
Economists warn that easier financing can push prices higher if supply is tight. If more buyers qualify overnight, demand rises. Sellers take notice. Listing prices follow.
That creates a loop. Buyers get lower payments, but homes cost more. The gap can cancel out part of the benefit, especially in hot markets with limited new construction.
Supply is the pressure point. Without more building, affordability solutions that only target financing are likely to have mixed results.
What Buyers Should Watch
- Total cost: Lower payments can hide higher lifetime interest.
- Equity pace: Slower principal repayment delays wealth-building.
- Mobility: Moving within a few years can be harder if equity is thin.
- Rate shifts: Refinancing may help later, but is not guaranteed.
Policy Alternatives Under Discussion
Even as longer loans get attention, other options remain on the table. Zoning reform and faster permitting can unlock new supply. Targeted tax credits can help first-time buyers without fueling bidding wars. Rate buydowns and shared-equity models reduce payments with clearer exit paths.
Financial coaches often favor simpler tools. Bigger down payments, shorter terms, and emergency savings help families handle shocks. Coleman’s brand leans in that direction, stressing debt caution over novel loan structures.
The debate will turn on details. Will any 50-year product be fixed-rate or adjustable? How will lenders price the extra risk? Will regulators step in with guardrails to curb negative equity?
For now, Coleman’s attention signals the issue has moved from policy chatter to kitchen-table talk. The promise is lower monthly payments. The cost is time, interest, and flexibility.
Buyers, lenders, and lawmakers now face a clear choice. Trade lower payments for longer debt, or fix the root cause by building more homes. Watch for formal proposals, lender pilots, and regulatory guidance in the months ahead. The next move will decide whether this idea becomes a niche product or a new normal.
