Updated October 26, 2026. This is general information, not financial advice. Details of the order may change as agencies implement it.
CNBC reported that President Donald Trump signed an executive order aimed at mortgage insurance and refinancing costs, and it has become one of the most-read stories of the week. Executive orders typically direct federal agencies to review or change policies, so the practical effect on borrowers depends on how agencies carry them out. Read the order’s text and agency guidance before making financial decisions.
How mortgage insurance works
- Private mortgage insurance (PMI): Lenders usually require PMI on conventional loans when the down payment is below 20%. Under the federal Homeowners Protection Act, you can generally request cancellation when your balance reaches 80% of the home’s original value, and it must end automatically at 78% if you are current on payments.
- FHA mortgage insurance premiums (MIP): Government-backed FHA loans carry their own insurance, and for many recent loans with low down payments, it lasts for the life of the loan.
Why refinance costs matter
Refinancing replaces your current loan with a new one and usually involves closing costs, such as lender fees, appraisal, title insurance, and recording charges. These commonly add up to a few percent of the loan amount. Whether a refinance pays off depends on how long you plan to stay and how much lower your new rate would be, because the monthly savings must outweigh the upfront costs.
What to check now
- Find out whether you currently pay PMI or MIP, and what it costs each month.
- Ask your servicer when PMI can be removed.
- If you are considering a refinance, request a loan estimate from several lenders and compare total costs, not just rates.
- Be wary of anyone promising guaranteed savings based on the order alone.
We will update this article as agencies publish more detail. For consumer guidance, the Consumer Financial Protection Bureau offers free tools for comparing mortgage offers.
