President Trump proposes 50-year mortgage
NEW YORK (CBS, KYMA) - Big changes could be on the way for Americans struggling to afford a home.
In a social media post over the weekend, President Donald Trump floated the idea of a 50-year mortgage, with an image of him next to one of former President Franklin D. Roosevelt, whose administration led to the establishment of the 30-year mortgage standard.
It comes as home ownership has become so expensive, the average age for a first time buyer has climbed to 40-years-old.
Financial experts say the pros include lower monthly payments, but the cons are paying more interest over time, which means it will take longer to build up equity.
"Not a lot of credit unions or banks offer it but if the White House were to endorse this product you'll likely see a lot more availability. I think the critics would say hey you would die before you'd actually own your home, the proponents would say well that's better than never getting the chance," said Kelly O'Grady, CBS News MoneyWatch Correspondent.
A recent analysis from the real estate company Redfin found the typical U.S. homebuyer spends 39% of income on housing while 30% is generally considered sustainable.
