# Is Trump’s mortgage plan a bad idea? **URL:** \ **Category:** Politics & Elections\ **Tags:** trump\ **Created:** [November 11, 2025, 11:39pm UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795 "2025-11-11T23:39:57Z")\ **Posts on this page:** 20\ **Page:** 4
**Author:** ![ParallelLines](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/parallellines/32/3575_2.png) [@ParallelLines](https://boards.straightdope.com/u/ParallelLines)\ **Post date:** [November 13, 2025, 12:10am UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/61 "2025-11-13T00:10:20Z")
Well, I think _nearly anyone_, no matter how smart/educated they are can fall for a scam with the right techniques or circumstances (not to mention changing technologies with AI voice replication, etc.!). And you list a number of very legal, and very predatory not-quite-scam ones that can be dangerous. A sadly huge part of industry is peddling dreams at an “affordable” price, and homeownership is one of the BIG dreams. Again, I’m not saying it’s a scam, or even a bad idea, but when everyone is selling you the sizzle, it’s important to read the fine print. For example, getting stuck in a series of endless 2-3 year cell phone upgrades, or even a 5-7 year series of car upgrades is more-or-less recoverable. 50 years of obligation to anything requires that much more planning ideally. Then again I should say, lots of people get life-long expensive commitments in terms of kids at an early age, and many to most of them seem to manage. 🤷 ---
**Author:** ![bump](https://avatars.discourse-cdn.com/v4/letter/b/7c8e57/32.png) [@bump](https://boards.straightdope.com/u/bump)\ **Post date:** [November 13, 2025, 1:04pm UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/62 "2025-11-13T13:04:21Z")
> [@Chessic\_Sense](#): > > The cash you didn’t give to the bank and presumably did something better with. That’s a BIG presumption. I’m pretty financially literate, but I’ll admit that when I save a couple hundred bucks a month on something like this, it almost never goes into investments or anything useful, but rather into the general fund where it most likely gets spent on whatever fun stuff minor surpluses get spent on. It’s like getting a raise at work; if you’re living within your means and smart, you’ll just set up your direct deposit to just put that excess straight into a savings account each month. But nobody consistently does that; most people like having a bit extra to spend on fun stuff. > [@ParallelLines](#): > > getting stuck in a series of endless 2-3 year cell phone upgrades I think the trick may be to go in knowing what your end goals are, beyond “I need a phone.” I think a lot of people don’t really plan for the long haul beyond “I want to buy a house.” And that’s when they get you. Lots of stuff looks idiotic if you’re planning to live there for 15+ years, but if you’re coming off a renting situation, and grew up with parents who also rented, you may not know what to look out for. ---
**Author:** ![Chessic\_Sense](https://avatars.discourse-cdn.com/v4/letter/c/7c8e57/32.png) [@Chessic\_Sense](https://boards.straightdope.com/u/Chessic_Sense)\ **Post date:** [November 13, 2025, 2:06pm UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/63 "2025-11-13T14:06:59Z")
> [@bump](#): > > it most likely gets spent on whatever fun stuff minor surpluses But still….you need to account for it. It went _somewhere_. You spent the extra $150 a month on hookers and blow. Okay…what was two decades worth of cocaine binges _worth to you_? Was it worth $400,000? Then the 50 is still the better option. You need to give me a dollar figure, or there’s really no point in comparing the two mortgages. ---
**Author:** ![doreen](https://avatars.discourse-cdn.com/v4/letter/d/858c86/32.png) [@doreen](https://boards.straightdope.com/u/doreen)\ **Post date:** [November 13, 2025, 2:15pm UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/64 "2025-11-13T14:15:08Z")
> [@Chessic\_Sense](#): > > Okay…what was two decades worth of cocaine binges _worth to you_? Was it worth $400,000? The problem is that many people don’t think that way until it’s too late. If they ever do. Carrie Bradshaw saying "“I spent $40,000 on shoes and have no place to live!” isn’t much of an exaggeration . ---
**Author:** ![Chessic\_Sense](https://avatars.discourse-cdn.com/v4/letter/c/7c8e57/32.png) [@Chessic\_Sense](https://boards.straightdope.com/u/Chessic_Sense)\ **Post date:** [November 13, 2025, 2:17pm UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/65 "2025-11-13T14:17:08Z")
The OP asks whether the 50-year mortgage is a bad idea. It’s not. Being stupid is, was, and always will be a bad idea. That’s nothing new. ---
**Author:** ![DavidNRockies](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/davidnrockies/32/6279_2.png) [@DavidNRockies](https://boards.straightdope.com/u/DavidNRockies)\ **Post date:** [November 13, 2025, 2:53pm UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/66 "2025-11-13T14:53:18Z")
One thing I think shouldn’t get lost in this discussion … Housing has _some_ parallels with oil and gas extraction: it’s very complicated, very labor intensive, and very capex intensive. They also all deal with finite commodities. When everybody in the developed world can _manufacture_ a widget, relying on relatively abundant component parts or raw materials, the market can press _hard_ with downward pricing pressure. Meanwhile, the things that keep _finite_ commodities scarce – from a purely economic standpoint – are _not_ the _enemies_ of the players in these industries (eg, fossil fuel, housing). They are the _friends_. Just like with higher education and health care, the primary problem is the trajectory of the underlying costs. Nearly everything else is trimming around the edges. I remember watching a documentary about Vancouver, BC’s efforts to address the affordable housing program. I’ll have to look into their progress: > **[3-year action plan (2024-2026)](https://vancouver.ca/people-programs/housing-vancouver-three-year-action-plan.aspx)** > > The 3-Year Action Plan outlines steps to make housing more livable and affordable for Vancouver residents. This is also another case that – like minimum (vs. living) wage – I’m reminded that _wealthy people money_ (ie, institutional investment in the housing market) is every bit as inflationary as _poor people money_. ISTM that housing has become a standout example of a market failure, and – as some people say about higher ed – the government making the capital more available to the buyer will primarily _also_ be inflationary. ---
**Author:** ![bump](https://avatars.discourse-cdn.com/v4/letter/b/7c8e57/32.png) [@bump](https://boards.straightdope.com/u/bump)\ **Post date:** [November 13, 2025, 3:08pm UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/67 "2025-11-13T15:08:33Z")
I was thinking more in the sense that most comparisons are comparing how that extra money could be invested in some way, vs. putting it into a mortgage. Then I was pointing out that in reality, few people actually invest that extra money. Of course, there’s a value to whatever you spend it on, but that’s a vague and difficult valuation. Is it worth it to have bought 15 years of more expensive beer versus having 15 years of additional equity in your home? Who knows? How do you actually make that comparison? ---
**Author:** ![Odesio](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/odesio/32/20003_2.png) [@Odesio](https://boards.straightdope.com/u/Odesio)\ **Post date:** [November 13, 2025, 3:36pm UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/68 "2025-11-13T15:36:13Z")
> [@HMS\_Irruncible](#): > > Equity will build so slowly that a lot of people will be tempted to just walk away if they can’t pay the mortgage. Easy credit plus high incentive to default – hello systemic risk! I learned a new phrase back in 2008 after the housing bubble burst: Strategic default. It’s when someone who is financially capable of paying their mortgage stops doing so, usually because the value of the property is so much less than the mortgage itself. I suspect with a 50 year mortgage you’re going to see a good number of people who just decide they’re never going to pay it off anyway, so they’ll take a hit to the credit rating, stop paying, and move elsewhere. ---
**Author:** ![Son\_of\_a\_Rich](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/son_of_a_rich/32/5439_2.png) [@Son\_of\_a\_Rich](https://boards.straightdope.com/u/Son_of_a_Rich)\ **Post date:** [November 13, 2025, 3:37pm UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/69 "2025-11-13T15:37:53Z")
> [@Velocity](#): > > One problem I see for banks, though, is that many home buyers would be dead before Year-50 comes up. Bank takes the house back, and the next guy pays until he dies. The important thing is the interest money coming in. ---
**Author:** ![HMS\_Irruncible](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hms_irruncible/32/7394_2.png) [@HMS\_Irruncible](https://boards.straightdope.com/u/HMS_Irruncible)\ **Post date:** [November 13, 2025, 4:49pm UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/70 "2025-11-13T16:49:06Z")
> [@Son\_of\_a\_Rich](#): > > Bank takes the house back, and the next guy pays until he dies. The important thing is the interest money coming in. Bank very much cares about asset value, independent of interest. Bank loans $500K, guy walks away, bank auctions it for $400K. That’s a lot of interest to make up. ---
**Author:** ![Jas09](https://avatars.discourse-cdn.com/v4/letter/j/d07c76/32.png) [@Jas09](https://boards.straightdope.com/u/Jas09)\ **Post date:** [November 13, 2025, 6:41pm UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/71 "2025-11-13T18:41:15Z")
I know you are just making an example, but at current 30-year rates a $500k loan financed for 50 years (again, assuming you got the same rate as current 30-year rates - it would probably be higher) the bank would earn that $100k back in ~3 years. And after those three years, the borrower has paid that $98k in interest to accrue a whopping $4,400 in equity. ---
**Author:** ![Zoobi](https://avatars.discourse-cdn.com/v4/letter/z/13edae/32.png) [@Zoobi](https://boards.straightdope.com/u/Zoobi)\ **Post date:** [November 14, 2025, 1:03am UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/72 "2025-11-14T01:03:26Z")
> **[Top Fannie Mae officials ousted after sounding alarm on sharing confidential...](https://apnews.com/article/fannie-mae-freddie-mac-firing-pulte-data-a4f8c53df74fef83ec7fd07e3d524746)** > > A confidant of Bill Pulte, the Trump administration’s top housing regulator, provided confidential mortgage pricing data from Fannie Mae to a principal competitor. Probably quite related ---
**Author:** ![PhillyGuy](https://avatars.discourse-cdn.com/v4/letter/p/ed655f/32.png) [@PhillyGuy](https://boards.straightdope.com/u/PhillyGuy)\ **Post date:** [November 14, 2025, 2:12am UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/73 "2025-11-14T02:12:10Z")
> [@Zoobi](#): > > Probably quite related Yes. From your link: > [@](#): > > While Smith still holds her position, the senior Fannie Mae officials who called her conduct into question were all forced out of their jobs late last month, along with internal ethics watchdogs who were investigating Pulte and his allies. This deserves to be a tremendous scandal but may be overshadowed by so much else. ---
**Author:** ![PhillyGuy](https://avatars.discourse-cdn.com/v4/letter/p/ed655f/32.png) [@PhillyGuy](https://boards.straightdope.com/u/PhillyGuy)\ **Post date:** [November 14, 2025, 2:16am UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/74 "2025-11-14T02:16:42Z")
> [@Jas09](#): > > I know you are just making an example, but at current 30-year rates a $500k loan financed for 50 years (again, assuming you got the same rate as current 30-year rates - it would probably be higher) the bank would earn that $100k back in ~3 years. If the bank held the mortgage, yes. But what happens in the normal situation where the bank sold it? I think the party to bash is going to be the government agencies that buy mortgages, not the banks. ---
**Author:** ![OldOlds](https://avatars.discourse-cdn.com/v4/letter/o/a3d4f5/32.png) [@OldOlds](https://boards.straightdope.com/u/OldOlds)\ **Post date:** [November 15, 2025, 7:31pm UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/75 "2025-11-15T19:31:13Z")
> [@Odesio](#): > > I learned a new phrase back in 2008 after the housing bubble burst: Strategic default. It’s when someone who is financially capable of paying their mortgage stops doing so, usually because the value of the property is so much less than the mortgage itself. I suspect with a 50 year mortgage you’re going to see a good number of people who just decide they’re never going to pay it off anyway, so they’ll take a hit to the credit rating, stop paying, and move elsewhere. And, FWIW, it kind of pisses me off that companies do this and it’s just smart, rational business, and when homeowners do it it’s a moral failing. ---
**Author:** ![Ancient\_Nerd](https://avatars.discourse-cdn.com/v4/letter/a/ed655f/32.png) [@Ancient\_Nerd](https://boards.straightdope.com/u/Ancient_Nerd)\ **Post date:** [November 16, 2025, 2:48am UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/76 "2025-11-16T02:48:58Z")
As you get close to retirement, you are looking for safe investments. Paying off the mortgage is one of the safest. Using your equity to invest in stocks is among the most risky. You need to be take on significant risk just to break even. Margins are for gamblers. ---
**Author:** ![DeadTreasSecretaries](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/deadtreassecretaries/32/4817_2.png) [@DeadTreasSecretaries](https://boards.straightdope.com/u/DeadTreasSecretaries)\ **Post date:** [November 16, 2025, 4:07am UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/77 "2025-11-16T04:07:52Z")
I’d say a house is a riskier investment than an index fund. ---
**Author:** ![Odesio](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/odesio/32/20003_2.png) [@Odesio](https://boards.straightdope.com/u/Odesio)\ **Post date:** [November 16, 2025, 7:00am UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/78 "2025-11-16T07:00:01Z")
> [@OldOlds](#): > > And, FWIW, it kind of pisses me off that companies do this and it’s just smart, rational business, and when homeowners do it it’s a moral failing. At the time, I saw an interview with a representative from the banking industry who said it was immoral for people who had the financial wherewithal to pay their mortgage to default. The same organization he represented had strategically defaulted on their building because they were so far underwater. The unmitigated gall of this man to stand in front of a televised audience, chiding people for doing what his organization did just boggled my mind. Looking back that seems almost quaint as this is a daily ritual of the Republicans. ---
**Author:** ![PastTense](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pasttense/32/14550_2.png) [@PastTense](https://boards.straightdope.com/u/PastTense)\ **Post date:** [October 2, 2026, 2:26am UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/79 "2026-10-02T02:26:36Z")
And now: > Late Thursday, **the average 30-year fixed mortgage rate was 7.54%.** While that was down slightly from Wednesday, it was still near its highest point since late 2023. > **[Mortgage rates hit highest point since 2023 as Treasury yields rise](https://www.nbcnews.com/business/economy/mortgage-rates-treasury-yields-markets-rcna600894)** > > Persistent inflation concerns, driven by high fuel prices, are prompting investors to sell bonds. That drives up interest rates for consumers. ---
**Author:** ![bump](https://avatars.discourse-cdn.com/v4/letter/b/7c8e57/32.png) [@bump](https://boards.straightdope.com/u/bump)\ **Post date:** [October 2, 2026, 3:26am UTC](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795/80 "2026-10-02T03:26:38Z")
There’s a segment of the population that winds _all sorts_ of moral/ethical nonsense in with borrowing money. Like it’s automatically and always a bad thing to owe money, that debt should always be paid back as fast as humanly possible, and that there’s some sort of moral failing if you default. None of which are necessarily the case. Just like businesses, the concept of good and bad debt is real. So is the idea that you could make more money investing extra cash instead of paying off debt, if your interest rate is low enough. And there are times when a strategic default _is_ the smart and moral decision, especially if you’ve got a family. If you’re underwater on your car, \*why keep paying"? That’s good money after bad, and you could do something far more useful for your family with it. There are consequences, but the assumption is that you’ve carefully weighed them, and this is the most financially sound action. Letting stuff like your moral obligation get in the way is IMO, stupid. I don’t generally agree with not repaying your debts, but nor do I think it’s ethical or moral to keep someone on the hook when they’re underwater on something either. [Previous page](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795.md?page=3) [Next page](https://boards.straightdope.com/t/is-trump-s-mortgage-plan-a-bad-idea/1024795.md?page=5)