The Donald Trump administration is reportedly considering a plan to back 50-year mortgages as a new path to housing affordability.
On paper, the idea sounds like a lifeline for struggling homebuyers, smaller monthly payments stretched over five decades, but Houston’s real estate experts warn the proposal is less a solution and more a setup for long-term debt that could slow wealth creation and repeat the same financial traps that devastated families during the 2008 housing crash.
U.S. Army veteran and Loan Officer at Rate, Nico Bell, doesn’t hide her skepticism.
“It makes me cringe,” she said. “A 50-year mortgage might lower the payment on a $400,000 home by about $200 a month, but it’ll cost about $300,000 more in interest over time. That’s money you’ll never see again.”
Bell has spent more than 20 years helping Houstonians navigate the mortgage process. She said the plan sounds appealing to buyers desperate to get into the market. But she warns it will quietly strip them of equity, the very thing that makes homeownership the cornerstone of Black wealth.
“It slows your ability to build equity because more of your payment goes to interest for decades,” she said. “If home prices rise due to demand and limited supply, you might even start out upside down, owing more than the house is worth.”
That risk, Bell added, is especially high in a city where affordable inventory is already scarce.
“If there aren’t enough homes, this could just push prices higher,” Bell said. “It’s like a band-aid on a broken leg. You’re not fixing the real issue, you’re just delaying the pain.”
Many supporters of the idea online argue they’d only use a 50-year loan temporarily, then refinance or sell within a few years. Bell said that logic is risky.
“In order to refinance, you still have to qualify,” she said. “If someone barely qualifies now, what makes you think they’ll qualify later? Life happens. You could lose income, or the market could shift.”
She draws parallels to the 2008 housing crisis, when many subprime borrowers were sold adjustable-rate mortgages on the promise that they could refinance before rates reset, only to lose everything when the market collapsed.
“We’ve seen this before,” Bell said. “It’s just packaged differently.”
A financial fix or a debt diet pill?
Michael G. Davis, CEO of Brooks & Davis Real Estate Firm, one of the nation’s largest Black-owned brokerages, shares Bell’s concern but from a broader economic lens. Davis distinguishes between what’s affordable and what’s attainable.
“Affordability is relative,” he said. “If I make a million dollars a year, what’s affordable for me isn’t affordable for someone making $100,000. What we should focus on is attainability, `how to help more people actually achieve homeownership. A 50-year mortgage doesn’t do that. It just lets people buy homes they probably can’t afford.”
Davis calls the proposal a “diet pill” approach. “If you want to lose weight, you have to change your habits,” he said. “You can’t just take a shortcut. A 50-year mortgage is that shortcut. It doesn’t deal with spending habits, financial management, or the lack of supply. It’s not sustainable.”
The biggest problem for Davis isn’t financing, it’s inventory. Adding more loan products doesn’t increase the number of homes. If you give people more ways to buy but don’t build more houses, you’re just raising demand and driving prices up. This plan hurts the same people it is supposed to help.
Davis said that fixing this requires more than just new loan options.
“From 1930 to 1968, Black people were locked out of the real estate market. That’s generations of lost opportunity. There’s no quick policy that erases that. What’s missing now is a mindset shift,” he said. “We need investment in coaching and counseling that helps our community believe we deserve to own homes, not just classes that teach numbers on paper.”
Bell says it all comes down to financial literacy. Before discussing 50-year loans, people must learn how to save, manage debt, and understand what they’re signing up for. Real housing reform means expanding access to supply, not stretching debt. They call for policies that incentivize affordable home construction, support first-time buyer education, and combat systemic barriers.
“Homeownership should build freedom, not lifelong debt,” Bell said. “The 50-year mortgage may sound like an opportunity, but for Black families in Houston, it’s more like a trap.”
