The Wealth Hack Hiding Inside Trump’s Mortgage Bombshell
What the Media Missed About Trump’s 50-Year Mortgage
I’ve seen a lot of discussion lately about the so-called “Trump mortgages”, the 50-year mortgage proposals that resurfaced in the U.S. earlier last year. That got me thinking again about long-term fixed-rate debt. Especially since similar ideas are being floated in other countries. So I wanted to write down some thoughts.
When someone like Dave Ramsey says “never borrow money,” it sounds emotionally reassuring. It feels safe. But it’s not a strategy. Not for someone who wants to build freedom through financial systems that actually work in the real world. Not if you live like an investor.
Companies use debt. They don’t use it recklessly, but they use it strategically. If you have a controlled, cashflow-first system, you can too.
Why do I love long-term fixed-rate debt?
First, because it turns the cost of capital into something predictable. If you can borrow money for 30 or 50 years at a fixed rate below your expected return on capital, you’re creating a structural edge. The lower your fixed cost, the more leverage you have in building asymmetric outcomes.
Second, because it reduces uncertainty. In a world where central banks are trapped, inflation is sticky, and rates are volatile, fixing your cost of money is a competitive advantage.
You’re not playing short-term games. You’re building a durable structure.
Third, because when the value of real assets inflates over time (and it usually does) while your debt stays constant, you benefit from time. Real estate, land, Bitcoin, productive businesses… these tend to outpace the fixed cost of your loan. That spread is wealth.
Why 30-50 years?
Because short-term payoff sounds sexy but often kills liquidity. A 15-year mortgage sounds smart, “I’ll be debt-free faster”, but it can cripple your ability to allocate capital where it really matters. It locks up your cashflow.
A 30 or 50-year mortgage? That’s optionality. That’s operational breathing room. That’s extra cash every month to direct into assets that produce flow or compound quietly in the background.
Yes, you may pay more in total over decades. But who cares?
Total paid is a vanity metric. Cashflow flexibility is a freedom metric. If you invest the difference wisely, the extra interest is irrelevant. In fact, it’s an enabler.
This is exactly how real companies think. They issue debt when they know their return on capital exceeds the cost of borrowing. They don’t rush to pay it back unless it makes strategic sense.
You should think the same way.
Let’s take Japan as a case study. In Japan, some homebuyers are taking 50-year mortgages just to afford property in cities. The goal? Reduce the monthly burden, even if it means carrying the debt for life, or passing it on.
Sounds wild. But is it?
In a world where fiat is structurally debased, where demographics are collapsing, and where few young people can buy homes without help, this is a rational adaptation. Japan even had 100-year mortgages back in the 1980s during their asset bubble.
Of course, the bubble popped. Real estate dropped. And yet, the concept didn’t vanish. Because the basic math, long debt, low fixed rate, high asset value still works, if your system is resilient.
Now imagine what happens if 50-year mortgages spread globally. Prices will go up. Not because the homes are better, but because more people can “afford” the monthly payment. As payments fall, demand rises. And as demand rises, price inflates.