Trump’s 50-Year Mortgage Gets Default Warning From Moody’s Chief Economist
Donald Trump
President Donald Trump's plan to introduce 50-year mortgages could increase the financial risks for both homeowners and lenders, according to Mark Zandi, the chief economist at Moody's Analytics. Speaking with Newsweek , Zandi said borrowers taking on a five-decade loan would struggle to build equity—with most payments in the first decade being on interest rather than principal. With limited equity, homeowners would have less of a financial cushion should a shock occur—a drop in house prices or
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