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.<\/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":2,"featured_media":47582,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[31004,208,31006,1011,2655,31007,74,76,31008,75,1695,31005],"class_list":["post-47581","post","type-post","status-publish","format-standard","has-post-thumbnail","category-san-diego","tag-50-year-mortgage","tag-cost-of-living","tag-financing","tag-housing","tag-housing-market","tag-mortgage","tag-san-diego","tag-san-diego-headlines","tag-san-diego-housing-market","tag-san-diego-news","tag-trump-administration","tag-us-director-of-housing"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/47581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=47581"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/47581\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/47582"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=47581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=47581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=47581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}