SAN DIEGO (KGTV) \u2014 The Trump administration announced they’re working on a 50-year loan program designed to lower monthly mortgage payments for home buyers, generating significant discussion about the potential benefits and drawbacks of extended loan terms.<\/p>\n
The proposal aims to make home ownership more accessible by reducing monthly payment amounts, though financial experts warn about the long-term costs.
“They could qualify for up to 18% higher on the price of the home,” said Desiree Lowe, the producing branch manager at Supreme Lending. “In a market like this, that could be a difference between them being able to buy at all.”<\/p>\n
The impact could be particularly significant in expensive markets like San Diego, where housing costs remain high due to a supply and demand issue.<\/p>\n
However, extending loan terms comes with financial trade-offs. When buying a home, the longer the loan term, the more interest buyers typically pay over the life of the loan. This makes shorter loans generally better financial decisions in the long run.<\/p>\n
Lowe also warned against people entering into these loans without considering the fluctuating housing market: if their home evaluation drops in the long lifespan of the loan, the home buyer would likely be underwater, owing more on the home than it is worth.<\/p>\n
“I don’t think charging someone more interest is in their best interest,” Lowe said. “Another drawback is going to be you’re going to be paying your principal down a lot slower.”<\/p>\n
The Federal Housing Director also posted on X, saying that the average lifespan of a home loan was 8 years. <\/p>\n
However,even if someone moved after barely paying down a 50-year mortgage, they wouldn’t have as much equity to carry into their next home purchase, Lowe warned.<\/p>\n
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"SAN DIEGO (KGTV) \u2014 The Trump administration announced they’re working on a 50-year loan program designed to lower…\n","protected":false},"author":3,"featured_media":370699,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5134],"tags":[58496,178686,5229,1582,276,8162,7065,8166,1435,3549,56756,7264,4352,67,586,132,5230,68,178687,2969],"class_list":{"0":"post-370698","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-san-diego","8":"tag-financing","9":"tag-50-year-mortgage","10":"tag-america","11":"tag-ca","12":"tag-california","13":"tag-cost-of-living","14":"tag-housing","15":"tag-housing-market","16":"tag-mortgage","17":"tag-san-diego","18":"tag-san-diego-housing-market","19":"tag-sandiego","20":"tag-trump-administration","21":"tag-united-states","22":"tag-united-states-of-america","23":"tag-unitedstates","24":"tag-unitedstatesofamerica","25":"tag-us","26":"tag-us-director-of-housing","27":"tag-usa"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115529056209845555","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/370698","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=370698"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/370698\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/370699"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=370698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=370698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=370698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}