Trump Signs Executive Order to Lower Mortgage Insurance and Refinancing Costs
Executive Order Targets Mortgage Costs and Refinancing Expenses
President Donald Trump signed an executive order titled “Decreasing Housing Costs for the American People” during a campaign rally at the Pinnacle Bank Expo Center in Grand Island, Nebraska, cnbc.com reported. The directive instructs federal agencies to cancel private mortgage insurance on eligible future loans proactively and to expand a program designed to make refinancing cheaper as inflation and rising interest rates strain affordability.
Data from the Federal Reserve’s Survey of Consumer Finances published in early October show that the monthly payment for a 30-year fixed-rate mortgage on a median-priced home consumed roughly 33% of median family income in 2025, compared with 26% in 2022.
Trump’s Executive Order today is the greatest Housing Executive Order in History. Because of President Trump’s bold actions to put Americans First, millions of Americans will save thousands and thousands of dollars.
Private Mortgage Insurance Proactive Cancellation Pilot Program
Conventional loans generally require private mortgage insurance, or PMI, when down payments fall below 20% of the purchase price. By contrast, Federal Housing Administration mortgages mandate insurance across all loans.
Standard conventional loan rules currently allow borrowers to remove PMI once their loan balance drops below 80% of the purchase price or when their balance reaches 78% of the original value, according to Fannie Mae. Borrowers can request removal from their loan servicer, or the servicer may cancel it automatically at 78% of the original value. Seth Appleton, president of industry trade organization U.S. mortgage insurers, commended the focus on lowering costs in a Thursday statement.
Annual PMI costs typically range from 0.2% to 2% of the loan amount depending on credit scores, down payment size, and borrowed sums. For instance, purchasing a $600,000 home with a 10% down payment and a 30-year fixed-rate mortgage at 7.3% yields a monthly mortgage insurance bill of $351, according to Freddie Mac calculators. Realtor.com reported that the median down payment during the second quarter of 2026 was 13.7% of the purchase price, or $27,100.
Refinancing Costs and Lender Title Insurance Policy Waivers
The executive order also seeks to lower refinancing expenses by making permanent an FHFA pilot program that waives lender title insurance requirements and permits cost-friendly alternatives. Gumbinger observed that the change may not fundamentally shift overall housing costs, which depend primarily on home prices and mortgage rates, though he acknowledged that every little bit helps.
Freddie Mac data showed that 30-year fixed-rate mortgage interest rates stood at 7.32% as of October 23, 2026. Simultaneously, refinance demand dropped 59% in mid-October relative to the same week in the prior year. Former FHFA director Sandra Thompson noted during an April 2024 congressional hearing that the original title acceptance pilot was limited in scope to refinances with a loan-to-value ratio below 80% across a handful of states and was scheduled to run through November 2027. Thompson estimated borrower savings between $500 and $1,500 in closing costs.
Lender fees tied to title and title insurance constitute the largest share of mortgage closing costs, according to a 2025 Urban Institute report. Making the waiver program permanent addresses an expense that has historically remained high for borrowers seeking new loans or refinances.