Arizona real estate expert weighs in on idea of 50-year mortgages (spoiler: she doesn’t like it)

PHOENIX – The 50-year mortgage concept floated by the White House recently might sound good on the surface, but an Arizona real estate expert is skeptical about the idea.

While homebuyers could get initial benefits from lower payments, a longer mortgage would likely hurt them later, according to Tina Tamboer, senior analyst for The Cromford Report, a subscription service that tracks the Valley home sales market.

“Generally speaking, it’s a short-term gain for a long-term pain,” Tamboer told KTAR News 92.3 FM’s The Mike Broomhead Show on Tuesday.

Tamboer noted that 50-year mortgages are just a proposal at this point, with no lenders offering them.

Thanks to President Trump, we are indeed working on The 50 year Mortgage – a complete game changer. https://t.co/HZDPzO0qJG

— Pulte (@pulte) November 8, 2025

But the idea became a trending topic after Bill Pulte, director of the Federal Housing Finance Agency, said the Trump administration was working on an extended mortgage plan in an X post over the weekend.

“The first reactions have been pretty negative to that idea of extending debt,” Tamboer said.

How much could a 50-year mortgage lower monthly payments?

According to The Associated Press, the monthly payment for an average-priced home in the U.S. ($415,200) with 10% down and a 6.17% interest rate is $2,288 with a 30-year term and $2,022 on a 50-year mortgage.

But the monthly savings would likely be lower because lenders generally charge higher rates on longer loans. And it would come at the cost of an additional $389,000 in interest over the life of the loan, per the AP analysis.

Furthermore, moving would be more difficult for homeowners with 50-year mortgages because their equity would take longer to accrue, Tamboer said.

She explained that a $400,000 mortgage would be paid down by $15,000 in five years with a 30-year loan but just $4,000 with a 50-year term.

“Many people move after about three to five years. They might expect to say, ‘OK, I’ve paid my loan down enough to be able to pay for the expenses of selling my home and moving into another one,'” she said. “But this type of loan severely restricts the equity buildup necessary to be able to sell your home and pay for all of the expenses.”

Phoenix housing market showing sings of correction

Tamboer also said Phoenix home sale contracts have been on the rise, indicating that affordability issues are abating without any drastic changes to the mortgage system.

“We’re having the best fourth quarter we’ve had in about three years. We’re outperforming 2022, ’23 and ’24 in fourth-quarter contract activity just from the mortgage rates coming down. So, when you’re looking at affordability, there are many aspects of it,” she said.

Additionally, there are signs that prices are coming down, Tamboer said.

“If we just let the market do what it’s supposed to do over time and don’t get impatient, then what you see is it will correct itself without any kind of manipulation,” she said.

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