The ‘Bad’ Debt Specialist is the Trump Administration’s Revenuation Plan for American HomeBuyers
Mikah Abigail LLC founder of @fitcreditdoctor Mikah Smith talks to fox news digital news about why she opposes the implementation of the 50-year withholding amount.
When the Trump administration floated the idea of a 50-year mortgage, debt solutions expert Mika Smith didn’t mince words.
“I was devastated,” he told Fox News Digital.
On paper, he extended the home loan more than half a century ago. In fact, Smith warns, it could trap millions of Americans — especially retirees and first-time buyers — in what he calls the “danger” of being completely under and under water. “
“My fear is that the 50-year loan is going to attract an unintended buyer, and someone who doesn’t understand how money works and how it works with interest,” Smith said. “If it’s a 50-year mortgage, it will take you four times as long to build equity in the home.”
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“It will attract the buyer who is already struggling,” he added. “There’s going to be a much greater disparity, too, between the rich and the poor. And I think the disparity is going to be even greater with this 50-year loan.”
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In early November, President Donald Trump and administration officials signed plans to improve 50-year loans that they believe would increase access to housing. Trump sent a social fact showing the “emergence of South American presidents,” including Franklin D. Roosevelt, whose new housing reforms helped shape today’s money for 30 years, and himself, suggesting that he will develop the type of 50 years.
Director of Financial Services of Federal Organizations Helloy Bilture added in a post on X That, “Thanks to President Trump, we are actually working on a 50-year loan – a complete game changer.”
Under current rules, loans longer than 30 years generally don’t qualify as “collaborative loans” under the CFPB’s relay-to-relay rule, and the FHA and GSES currently only allow loan names for loan modifications.
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Analysis by UBS found that 50-year mortgages carry interest rates of around 225 per cent of the home’s value – more than double the rates under 30-year loans. Ubs also noted that with 50-America, lenders would have paid only 11% of the principal after 20 years, highlighting how little equity is built up for such a long time.
“The people we’re going to help are going to be people with a plan … a big high-income plan coming down the line,” Smith said, noting that those hurting could start to be first-time families, retirees and even military families.
“What’s really worrying will be the older generations, people who just struggle, maybe they live with social security … if they don’t have the ability to fix even the home they have, that’s very opposite,” he explained. “I think in the people and maybe in the military, I think that will be a very scary situation because there is no ability to build any equality.”
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“We’re already talking about the first homes in the middle generation, generation Z, coming in with a low credit score. So when they jump into this 50-year-old generation, it’s really scary,” Smith said.
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The White House did not immediately respond to Fox News Digital’s request for comment.
Asked how a 50-year loan could change the way he trains clients to build a budget, emergency funds or home repairs, Smith emphasized saving as much as possible before buying.
“If you budget now, you’ll be better off budgeting,” Smith said. “You need to put aside money for a rainy day … If you can just put a little, because again, that the compound interest is important to save the important time.”
“When you’re sitting here, and you’re one market correction away from being underwater, I mean, that’s the biggest thing that really scares me.”
“However, I teach salespeople, investors, salespeople all over the country, and that’s who they are now [are] “It’s actually the most amazing thing,” he said. I haven’t heard a single comment from another estate agent yet… I think [there is] A lot of positive feedback from other lenders, but we must understand that the narrative will vary depending on the motivation. “
Admitting that a 50-year loan feels like a lifetime commitment, Smith warned against the culture of instant gratification and the loss of long-term thinking.
“We live in a microwave society, and many people fail to think in the long term and I think that’s what gets you into trouble … Loans should be something where it’s the same, you buy, you have something.”
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“You have to look at the long-term picture if you want to be successful,” he said. “[The 50-year mortgage] it’s actually a recipe for disaster in the long run. “
When asked for one word to describe the whole idea, Smith didn’t hesitate: “It’s dangerous.”
“You’ve got to do the math. You’ve got to do the numbers. And again, you’re one market away from being completely underwater. So I think the best word is absolutely risky.”
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FOX Business’ Eric Repell updated this report.
