Natalie Robbins / Journal Staff Writer Nov 22, 2025

President Donald Trump proposed a 50-year mortgage to solve the nation’s housing crisis. New Mexico real estate professionals say adding 20 more years to a home loan may make it possible for some to own a house who wouldn’t be able to otherwise. But at what cost?

Housing is unaffordable — the median price for a single-family detached home in Albuquerque hit a record high of $379,545 in August, which only 13.5% of New Mexico renters can afford. Nationwide, the median age of a first-time homebuyer is 40, another all-time high.

Paying off a home for 50 years rather than the usual 30 years would lower monthly payments, Trump said in an appearance on Fox News last week.

U.S. Director of Federal Housing Bill Pulte supported the idea in a post on X: “We are laser focused on ensuring the American Dream for YOUNG PEOPLE and that can only happen on the economic level of homebuying. A 50 Year Mortgage is simply a potential weapon in a WIDE arsenal of solutions that we are developing right now. STAY TUNED!” Pulte wrote.

“Extending mortgage terms from 30 years to 50 years can modestly reduce monthly payments, making homeownership slightly more accessible for some buyers,” said Chris Shain Tanner, president of the Greater Albuquerque Association of Realtors, reading a statement from the National Association of Realtors.

A $420,000 home financed at a 6.3% interest rate on a 50-year loan would cost $236 less per month than a 30-year loan, though the monthly savings come with significant trade-offs for interest, the statement said.

The total cost of the home would rise to around $1.1 million when paid off, with nearly $360,000 more in interest over the life of the loan. It would take almost 40 years to pay off half of the balance, Tanner said, meaning most borrowers would not begin building meaningful equity until the final decade.

“Longer loan terms do not address the true cause of today’s affordability challenges, which is limited supply of homes in the low and middle-priced ranges,” the statement said.

By the time the loan is paid off, a first-time homebuyer at the median age of 40 would be 90 years old and would have paid almost double the home price in interest.

“If it’s going to take you 50 years to own an asset, you’re going to pay an awful lot of interest in the process,” said New Mexico economist Kelly O’Donnell. “A 50-year mortgage is a long time.”

Homeownership is the primary method by which middle-income Americans build wealth, O’Donnell said, and most people rely on their homes being paid off by the time they retire.

“If it’s 50 years, you will be paying a mortgage well into your retirement,” she said. “I would be very cautious about this, because it could do more harm than good.”

In Albuquerque, a low housing stock, especially of more affordable “starter homes,” is one of the main drivers of unaffordability, said Albuquerque real estate broker Tego Venturi.

“Our challenge, especially in New Mexico, is still that we’re short on supply,” Venturi said. “We need more supply in our market.”

In most cases, people don’t hold their home loan for the entire term of their mortgage — they sell their house before it’s fully paid off — which means they could, theoretically, take advantage of the lower monthly payment by selling the home before the interest accumulates over 50 years, Venturi said.

“For a very small group of people who truly have no other option, it might be a way to ownership. And the thing is, ownership is still going to be a better option long-term, even on subpar terms — which they definitely are — than renting,” he said.

Venturi said he doesn’t see many buyers interested in loans with longer terms than 30 years. The 50-year mortgage, should it come to fruition, will be an option to buyers who can still opt for traditional shorter mortgages.

“I don’t see a problem with having it and offering it, but people that were to consider it, they really need to look at it and have eyes wide open when they go into it, so they understand the trade-offs,” Venturi said.