Buying a House Is Expensive, but There Are Ways to Rein In Costs

New Federal Proposal: 50‑Year “Portable” Mortgages

The administration has unveiled a plan to introduce 50‑year mortgages that can be “portable”—allowing borrowers to transfer the loan to a new property without refinancing. Proponents argue that extending the repayment period will lower monthly payments, making home ownership more attainable for first‑time buyers and those with limited cash flow.

Key features of the proposal:

• Loan terms up to 50 years instead of the traditional 30.
• Portability clause that lets borrowers move the mortgage to a different home without incurring prepayment penalties.
• Potential for reduced interest rates through government‑backed guarantees.

Critics caution that a longer term could increase the total amount of interest paid over the life of the loan, and that the portability provision may complicate the secondary‑mortgage market.

What Housing Experts Recommend: Alternative Ways to Cut Costs

While the federal plan is still under review, industry specialists suggest a range of practical steps that homebuyers can take right now to keep expenses in check.

1. Boost Your Down Payment
Putting more money down reduces the loan amount, lowers monthly payments, and can eliminate private‑mortgage‑insurance (PMI) premiums. Many experts advise saving at least 20 % of the purchase price before applying for a mortgage.

2. Consider “Starter” Homes in Emerging Neighborhoods
Purchasing in up‑and‑coming areas often means a lower price tag and the potential for rapid appreciation. Look for locations with new infrastructure projects, schools, or transit expansions.

3. Explore Co‑ownership or Multi‑Family Options
Buying a duplex or a triplex and renting out one or more units can offset mortgage costs. Shared‑ownership arrangements with family or trusted friends can also spread the financial burden.

4. Shop Around for the Best Mortgage Terms
Even a small difference in interest rates can translate into thousands of dollars saved over the loan’s life. Use comparison tools, negotiate with lenders, and consider credit‑union loans, which often offer lower rates.

5. Take Advantage of Tax Incentives
First‑time‑buyer credits, state‑level down‑payment assistance programs, and mortgage‑interest deductions can all reduce the effective cost of homeownership. Consult a tax professional to ensure you’re claiming every available benefit.

6. Plan for Future Refinancing
If rates drop, refinancing to a shorter term can shrink the total interest paid. Keep an eye on market trends and maintain a strong credit score to qualify for the best terms.

By combining these strategies with any future policy changes—such as the proposed 50‑year portable mortgages—buyers can better manage the high price of housing and move toward sustainable homeownership.