>> President Donald Trump recently hinted on a social media platform.

Truth social that he may push for 50 year mortgages.

The current limit is 30 years.

Well, the shift could lower monthly payments for home buyers.

Economists warn it could also settle Americans with much higher interest costs over time.

Joining us to discuss the pluses and minuses of a 15 year mortgage option is Dennis Rod can residential real estate reporter for Crain's Chicago Business.

Welcome back to a sense joining us by Bridges.

How are Good.

Thank you.

Bill, Pulte, director of the federal Housing Finance Agency called Trump's idea to introduce a 50 year mortgage, quote, a complete game changer in confirmed that the is working on such a proposal.

What a 15 year mortgage option make housing more affordable for buyers in the short term.

Sure it would drop People's House payments if you're buying a $200,000 House, you would probably pay about 113 less per month.

>> $400,000 House, you pay about $300 less per month.

I know that it sounds as if the one should be 2 times the other, but those figures are accurate.

So you would be saving money.

In the short term this month and each month you're paying.

But over the course of the long term, as your introduction said, you would pay more because you would be the interest rate.

Covers a 50 year risk.

So the lender is going to charge you more over time.

The other problem, the other thing you're going to see in the math is in a house payment and a 30 year mortgage, you're paying proportionally more interest than equity in principal.

Most people call it in the beginning and those reverse over time.

The amount interest you're paying shrinks over time and the amount of principal or equity you're paying grows, it would take far longer with a 50 year.

Mortgage are 30 years.

You get to the point where you've you've you're paying only principle.

It would take far longer because you're paying for 2 decades more.

So you'll have a smaller stake in that house, a much longer journey equity.

So let's let's let's have another example because opponents warn, as you said, that, you know, you're going pay much more interest over time.

So.

>> Cnn reports that a $450,000 home at 6 point 6 and a quarter percent interest would cost $547,000 in interest over 30 years versus 1.0, 0 2 million over 50 years lowering monthly payments by about $300.

It's not worth it.

If you're buying a house.

Well, one thing we should keep in mind is very few people would be in the House for 50 years to pay that entire total.

Very few people are in the House for 30 years now to pay off that entire total.

a lot of people wouldn't be looking at that final out.

They would really be looking at.

Does this save me money now?

I can't afford to buy a car.

I can afford.

Groceries are going up and everything else is going up.

I've got student loan payments.

What will get me into a house now so that I think they will look at that as a savings because they're not looking 50 years down the line.

And if it takes you longer to earn that equity so you don't have as much at first, if you have less equity, does that put homeowners at risk during housing market downturn, which we know can happen?

Well, I don't know that it puts the homeowner at risk so much as a foot to the lender at risk because I have a small stake in my house.

I may just let it go.

I have not built up much equity and there's a downturn.

We saw this in the 2008 down 2007, 2008 downturn.

>> There were an awful lot of people who had taken out 0 interest, 0 down payment loans, very low down payment loans.

And when the time came, they said, OK, then I'll let it go.

And so the question would be if you're paying so much more interest in those early years because you're paying for 50 years, you don't have much of a stake.

And if there is a crisis, whether it's a financial crisis or a crisis at home where you can pay your own bills, you're much more likely.

It appears to give up on the house.

So if you never really fully owned the House right over like a 15 year mortgage how is that any different from renting, right?

Not just rent.

I have the very same question.

It really if you're not building up an equity stake and you're not going to be there for 50 years to get to the point where, you know, the 30 year mortgage is set up so that if you buy your house when you're say 30, you get to 60, you're on a fixed income.

Shortly after that, you have your housing nailed down.

But who's going to have paid off of 50 year mortgage?

The average first time buyer age now is 40.

So you take out a 15 mortgage, you're going to 90 when finally you have free housing and don't don't, you know, don't worry about your kids need to go to college.

In the we've got just a few seconds left.

Let's talk a little bit about supply and demand.

Could a 15 year mortgage could that push prices higher with not without also boosting supply?

>> That is one of the concerns that people have is that if we get this mortgage product, while we still have very tight inventory and we're not building enough homes, not only in Chicago, but nationwide.

>> Then yeah, I I can afford more.

And I'm gonna go ahead and bid up because I've got this 50 year mortgage.

I have a lower payment, which means I can inch up a little bit pay more.

So, yeah, I will bit more to get the few houses that are on the market unless we have a big influx of supply.

And of course, a lot more has to happen before this product could be introduced as far as going through all the regulatory bodies and all of that, right?

Yeah.

This is not going to be available tomorrow.

It's going to take