President Donald Trump has issued an executive order designed to lower mortgage expenses through several targeted measures. The order, formally titled “Decreasing Housing Costs for the American People,” instructs federal agencies to proactively eliminate mortgage insurance obligations for qualifying borrowers and broaden access to more affordable refinancing options.
The order addresses a significant economic challenge facing Americans. Housing affordability has deteriorated substantially in recent years, with monthly mortgage payments on median-priced homes reaching approximately 33% of median family income in 2025, compared to 26% in 2022, based on Federal Reserve data released in early October.
A key component involves private mortgage insurance, or PMI, which borrowers typically must pay when their down payment falls below 20% of the purchase price. The executive order directs the Federal Housing Finance Agency to establish a pilot program that automatically removes PMI once borrowers reach a specified equity threshold in their homes. Currently, borrowers can request PMI removal once their loan balance reaches 80% of the original purchase price, though servicers may remove it automatically at 78%. PMI costs generally range from 0.2% to 2% annually depending on factors including credit score and down payment size.
The order also seeks to reduce refinancing expenses by making permanent an FHFA pilot program that waives lender title insurance requirements and permits alternative approaches. Title-related fees constitute the largest portion of mortgage closing costs, according to a 2025 Urban Institute analysis. The existing pilot program, originally scheduled through November 2027, operated with limited scope in select states and primarily for refinances with loan-to-value ratios below 80%. Previous estimates suggested consumers could save $500 to $1,500 in closing costs through this program.
Industry representatives have responded positively. Federal Housing Finance Agency director Bill Pulte stated that millions of Americans would realize substantial savings. However, housing experts note the ultimate consumer impact remains unclear pending additional implementation details. Current mortgage rates stood at 7.32% for 30-year fixed mortgages as of October 23.
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