MCLENNAN COUNTY, Texas (KXXV) — President Trump's proposal for 50-year mortgages is generating significant discussion about its potential impact on future homebuyers, with industry experts offering both praise and criticism for the plan.
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Local realtor Cameron Gomez says he's excited about what the 50-year mortgage proposal could mean for the housing market.
"It's going to be a game changer in our industry for sure," Gomez said.
The extended loan terms would lower monthly payments by spreading them over two additional decades, but mortgage-holders would also take longer to build home equity.
Gomez, who owns Agents of Texas, believes a 50-year mortgage could help expand inventory, lower the age of first-time homebuyers and allow people to get approved for larger loans, opening up a bigger buying pool.
"Then you get to call a house a home, whereas renting, you know, you may be paying the same amount in rent that you would on a 50-year mortgage, but you're just paying that landlord, you know to pay their own mortgage or put money in their own pocket," Gomez said.
"I think it's going to help bring down those days on the market that a lot of these listings are just sitting and sitting for a long time," Gomez said.
President Trump suggests that a 50-year mortgage would address affordability in the United States.
Lance Thrailkill, cofounder and CEO of Print3D Technologies, says his company builds 3D-printed homes as an affordable housing solution.
"We currently need 7.4 million affordable homes. We're only building 1.2 million homes per year," Thrailkill said.
Both Thrailkill and Gomez agree that while a longer mortgage would reduce monthly payments, it could also drive up home prices.
"You'll be paying interest, you know, interest only basically for a long time. So in that, you either want to be confident that you're gonna stay put in the appreciation of that house, the equity you will gain will be by the value of the house increasing over time," Thrailkill said.
The 50-year mortgage remains just a proposal with no concrete implementation timeline.
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