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Stock impact report

What Trump's 50-year mortgage plan could mean for homebuyers [Yahoo! Finance]

NerdWallet, Inc. (NRDS) 
Company Research Source: Yahoo! Finance
decades, Federal Housing Finance Agency Director Bill Pulte confirmed this weekend, calling it "a complete game changer" and a "potential weapon in a WIDE arsenal of solutions that we are developing right now." Details are still sparse, but a 50-year loan could meaningfully reshape a housing market where 30 years is the norm. Experts say homebuyers who opt for the longer loan would see lower monthly payments but a dramatic increase in the total cost of the loan. "Borrowers might be able to pay less monthly principal and interest, since the loan would be spread out over half a century," said NerdWallet lending expert Kate Wood in an email. "But the total interest paid over the life of the loan would be staggering, since even with a low rate, you're looking at 50 years' worth of interest." Take a homeowner who wants to buy a $400,000 home with a 10% down payment, requiring a $360,000 loan. Even if both 30- and 50-year loans carried the same 6.25% rate — which experts say is unli Show less Read more
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