Professionals chime in on the proposed 50-year mortgage plan

(WWAY)–Prices on new homes throughout the cape fear region have skyrocketed in recent years. Speaking on FOX News, the President’s idea would extend the length of a loan up to twenty years

“All it means is you pay less per month. You pay it over a longer period of time.” said President Trump.

Berkshire Hathaway’s, Jennifer Richardson, says a longer loan has its risks, but the idea could be the difference between someone getting a home or not.

“A fifty-year mortgage plan. The pros of that are that it could potentially get that buyer through the threshold of home ownership. where there are already affordability issues where we are in Wilmington, North Carolina”, said Hathaway.

But UNCW’s economist professor Dr. Mouchine Guettabi, says it could be a tradeoff for getting lower monthly payments.

“You are going to have a harder time accumulating equity, meaning how much ownership you build into the home, it’s going to take a little longer”, said Guettabi

Critics say a longer loan doesn’t address other issues like lack of supply and high interest rates. Heath Altman says it might not be worth having a loan that logn

“The cons, to me, is if you termed it out and paid the interest, it would be the double the life of a 30-year fix”, said Altman.