Buying a home in the United States has shifted from being just a milestone of adulthood to becoming an exercise in financial endurance. In a market pressured by high interest rates, historically low housing inventory, and rising maintenance costs, purchasing a home has turned into a challenge that requires more than planning: it requires creativity.
At the same time, the government and the real estate sector are discussing measures aimed at easing pressure on buyers. Among the recent proposals, two stand out for their boldness and the heated debate they have sparked. One is the creation of 50-year mortgages; the other, the possibility of making home loans “portable,” meaning transferable to a new house while keeping the original interest rate. Both sound promising at first glance, but they carry deep implications for buyers, banks, and investors.
It is still too early to know whether any of these changes will move forward. But in the meantime, millions of Americans continue to face a rigidly frozen market. And the question echoing among them is simple: is there any real way to lower costs today?
The answer is yes, but it starts with understanding the landscape, recognizing structural limitations, and adopting smarter strategies when seeking financing.
Why buying a home has become so expensive
The rise in interest rates in recent years is the most visible factor. After dropping below 3% during the pandemic, the average rate for a 30-year mortgage is once again above 6%. This jump drastically reduced the purchasing power of new buyers, reinforcing a dynamic that was already forming: homeowners with older loans don’t want to sell, because swapping a low rate for a much higher one means seeing their monthly payments double or even triple.
This immobility has frozen a significant portion of the housing stock. Homes available for sale have become scarce, especially in the most competitive metropolitan areas. Added to that is the shortage of new construction. In much of the country, building activity has not kept up with demand since the 2008 crisis, and tariffs on materials such as steel, lumber, and cabinetry have only driven builders’ costs even higher.
To make matters worse, the cost of maintaining a home has soared. Home insurance has become more expensive, particularly in states facing extreme weather events. Basic services like electricity and water have gone up. And economic uncertainty is making many buyers reconsider taking on long-term debt.
The result is an environment where would-be homeowners face simultaneous obstacles: high prices, heavy interest, intense competition, and a financially uninviting outlook.
The 50-year mortgage: a solution with a steep price
Among the proposals being discussed, the 50-year mortgage may be the one that sparks the most curiosity, and concern. The idea is to reduce monthly payments by spreading them over a longer period. However, experts point out that although smaller installments may seem advantageous in the short term, the final cost tends to be much higher.
The projections are striking. On a $500,000 loan at 7% for 30 years, the buyer would pay around $700,000 in interest alone. Over 50 years, that amount rises to nearly $1.3 million almost triple the home’s original price.
In addition, such long mortgages make building equity extremely slow. In 10 years, a borrower would have paid off only about 4% of the principal, compared to around 16% with a traditional 30-year mortgage. The difference may seem technical, but it has real consequences. Such slow amortization leaves homeowners vulnerable to drops in property values, increasing the risk of owing more than the home is worth.
There are also regulatory hurdles. In many cases, loans longer than 30 years do not qualify as “standard” mortgages under the Dodd-Frank Act and are therefore not eligible for purchase by Fannie Mae or Freddie Mac. This means private investors may require even higher rates.
The promise of smaller monthly payments, therefore, comes with a silent cost: the real possibility of turning the buyer into someone who pays for decades without truly approaching full ownership of the property.
“Portable” mortgages: an appealing idea, but difficult to adapt to the U.S. system
Another proposal that has gained attention is allowing buyers to “carry” their mortgage rates to a new home. The model works in Canada and would help unlock the U.S. market by encouraging homeowners to sell and move without losing their advantageous rate.
But the U.S. mortgage system operates differently. Here, loans are quickly bundled into securities and sold on the financial market. Changing the home associated with a loan alters its risk, affecting the value of the securities already purchased by investors.
Experts point out that while theoretically possible, implementing the idea would require deep changes to how the secondary mortgage market functions. Still, the idea has appeal: it would allow millions of families to move without facing the brutal impact of current interest rates.
Lowering Fannie Mae and Freddie Mac fees could have immediate effects
Among the proposals discussed by specialists, the most viable appears to be reducing the fees charged by Fannie Mae and Freddie Mac in the so-called “loan-level price adjustments.” These adjustments vary based on the buyer’s profile and the loan’s risk and can add a quarter to half a percentage point to the final rate.
Cutting these fees would directly reduce mortgage costs, especially for middle-income buyers, who are the most affected by current conditions. It would be a relatively simple measure with rapid impact.
What buyers can do now to control costs
Despite the challenging landscape, practical and effective strategies exist for those looking to reduce expenses when buying a home, even if none of them is a miracle solution.
One of the first recommendations economists make is to expand the geographic search. Many concentrated areas have unreachable prices, but suburban regions and fast-growing cities, especially in the Sun Belt, offer more supply and builders willing to negotiate. In some markets, companies even reduce prices or offer incentives to close deals, such as covering closing costs or temporarily lowering interest rates.
Shopping around for different loans also generates substantial savings. Freddie Mac notes that comparing just two offers can save hundreds of dollars per year, and four or more can reduce costs by over $1,000. Yet many buyers accept the first offer they receive, a particularly expensive mistake in a high-rate market.
Down payment assistance programs, offered by states and local organizations, can also ease the initial financial burden. Grants, low-interest loans, and forgiveness programs after a few years of occupancy are available, though many buyers are unaware of them. Platforms like Down Payment Resource help map available options by region.
Another overlooked point is the cost of homeowners insurance, which has risen significantly in many states. Reviewing the policy, seeking alternative quotes, and adjusting coverages can lead to meaningful savings over time.
The conclusion: despite uncertainties, there are still paths forward
The debate over new ways to finance homeownership will continue in the coming years. Proposals such as 50-year mortgages or portable loans may enter or leave the agenda as political priorities shift. But the core problem remains: the United States needs to build more houses, more quickly, and with less bureaucracy.
Until that happens, buyers must rely on information, compare options, negotiate, and take advantage of little-known but extremely helpful programs.
There is no magic solution for a market this complex, but there is strategy, and in today’s environment, strategy can make the difference between entering the housing market or not.
