President Donald Trump’s proposal for a 50-year mortgage aims to increase home affordability, but current regulations prevent major lenders from offering it. This could potentially impact home buyers as they struggle to afford homes near record-high prices, according to Federal Reserve Economic Data (FRED).

While a 50-year mortgage could lower monthly payments, saving $227 a month, it could cost significantly more in the long run. UBS analysis shows total interest paid could reach 225% of the home price, impacting wealth accumulation and equity. Most homeowners wouldn’t live long enough to pay off the loan.

Despite potential benefits over renting, a 50-year mortgage poses risks. UBS found only 11% of the mortgage is paid off after 20 years, compared to 46% with a 30-year mortgage. The median age of first-time home buyers is 40, making it unlikely to pay off the loan by the average life expectancy of 78.4 years in the U.S.

While a 50-year mortgage may help build equity slowly, it could hinder long-term wealth and reduce bequests to family members. The proposal could be seen as a back-door estate tax, with borrowers potentially paying more than triple the purchase price over time. Lawrence Yun, chief economist at NAR, suggests sound underwriting could help homeowners build equity through home price appreciation.

Read more at Yahoo Finance: 5 Ways a 50-Year Mortgage Could Destroy (or Grow) Your Wealth