The Downsides of 50-Year and Portable Mortgages

By Joshua Holt

Meet Joshua, a licensed real estate professional and accomplished broker. As the forward-thinking leader of the Holt Real Estate Team, he has forged a strategic alliance with Keller Williams and PLACE to deliver on Our Promise.

As new mortgage ideas hit the headlines, the big question is simple: do they truly make buying a home easier, or do they shift the cost in other ways? 50-year and portable mortgages each offer advantages, but their ripple effects reach far beyond monthly payments.

To understand what these ideas actually change, it helps to look at how each affects buyers, sellers, and the market.

Lower payments but higher prices. A 50-year mortgage lowers monthly payments by extending the loan term. President Trump recently suggested this as a way to help more people afford homes. The smaller payment can make qualifying easier, but it also fuels demand.

When more buyers enter the market, prices often rise. That means a lower monthly cost may be paired with a higher purchase price. On top of that, the interest paid over time increases.

How portable mortgages help homeowners. Portable mortgages approach affordability differently. They allow homeowners to move their current low-interest rate to a new home. Someone locked into a 3% loan could keep that rate rather than trade it for a 7% one. This helps existing homeowners who feel stuck, but it offers no benefit to first-time buyers. It also adds challenges for lenders and investors who rely on the traditional payoff system.

Delay wealth building. A 50-year mortgage builds equity very slowly. Homeowners may wait decades to own a significant share of their home, delaying the usual wealth-building benefits of homeownership.

Risky lending behavior. Longer loans or portable mortgages can make homes seem more affordable than they really are. If buyers borrow too much and the market falls, they could face serious financial risk, as seen in 2008.

While these proposals may help some buyers in the short term, they do not address the real drivers of affordability issues, such as limited housing supply and wage stagnation. They ease pressure without fixing the root problem.

These new options could pop up if you’re buying, selling, or refinancing, but what’s right for you depends on your goals and timing. You can call me at (608) 345-6594 or email me directly at jdholt@kw.com. I’m happy to help you figure out the best next step.