John Hope Bryant Says The 40-Year Mortgage Is In and The 30-Year Mortgage Is Out

Some critics don't agree with Hope Bryant’s ideology.

Operation Hope’s Founder John Hope Bryant wants homeowners to pay attention to the 40-year mortgage over the 30-year one, Fortune reports.

In a new op-ed, Hope Bryant highlighted how the standard 30-year mortgage route for homeowners may no longer be feasible with the rising costs of living in the United States.

“The 30-year mortgage has been the American standard for decades, balancing affordable monthly payments with a reasonable repayment period,” Hope Bryant said.

“However, as home prices soar and interest rates rise, particularly in urban areas, even 30-year mortgages can leave many families struggling with unaffordable payments.”

Once a former advisor in President Obama’s administration, the nonprofit founder touched on the 30-year mortgage being a product of the Great Depression when Americans lived shorter lives. In 2024, people are living longer, with life expectancy hitting 80 years, according to Macrotrends. However, in today’s world, mortgage rates have doubled in a short period of time, which has put homeowners in fixed debt for three decades, especially if there is a low interest rate.

The result is accidental landlords and people pausing selling. Hope Bryant quoted real estate agency Redfin’s chief executive, Glenn Kelman, saying the 30-year mortgage has “the perverse effect of keeping home prices high” due to the rising interest rates of the Federal Reserve due to inflation.

“Critics may argue that a longer mortgage term increases the total interest paid, but the benefits of affordability and access outweigh this drawback. For many, the alternative is indefinite renting, which builds no equity and leaves families vulnerable to rising rents and economic displacement,” Hope Bryant said.

“A 40-year mortgage allows more people to begin building equity sooner, offering a pathway to long-term financial stability and sustained human dignity—a key element of the American dream. A pathway up the repaired economic aspirational ladder in America.”

The entrepreneur suggests the layout of the 40-year mortgage, using the Federal Home Loan Bank (FHLB) system and federal subsidies for first-time homebuyers who finish financial literacy training. The concept combines extended mortgage terms with financial education, making homeownership more accessible while achieving economic growth.

Some critics don’t agree with Hope Bryant’s ideology, claiming a longer mortgage term would just increase the amount of paid interest, but there are longer benefits aligned with affordability and access. The 40-year mortgage gives homeowners room to build equity sooner. The financial literacy portion equips first-time buyers with the necessary skills needed to navigate through finances effectively and potentially avoid predatory lending.

He also feels the new mortgage trend can address the growing wealth gap in America that is often talked about by Democratic leaders. During the 2024 Democratic National Convention (DNC), former Housing and Urban Development (HUD) secretary Marcia Fudge and Rep. Ted Lieu (D-Ca.) gave some insight into presidential nominee Kamala Harris’s housing proposals.

According to ABC News, Harris pledged to give up to $25,000 for down-payment support for first-time homeowners and a layout for new construction of three million new housing units to combat the housing supply shortage.

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