# Could Refinancing Your Mortgage Become Cheaper?

By Virginia Fargo (@virginiafargo) · Published 2026-10-23

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President Trump signed an executive order Oct. 22, 2026, proposing to cut housing costs through automatic PMI cancellation, cheaper refinancing, lower rates on certain government direct loans, and more manufactured housing. None of these changes are available today. Federal agencies must still develop and implement each program and rule before it takes effect, and industry groups have flagged that the outcome depends on how agencies build the programs ([National Mortgage Professional](https://nationalmortgageprofessional.com/news/trump-targets-mortgage-insurance-refi-costs-sweeping-housing-order)).

What the order signals matters for anyone who owns a home or plans to buy one, and for the real estate agents who guide them. As a mortgage broker with 15 years in the business, I read the announcement closely. My take: these proposals are promising, but they are proposals. Understanding what could change, and who it may apply to, is the first step to making an informed decision about your mortgage.

Here is what homeowners, homebuyers, and Realtors should know about each proposed change, what it does and does not do, and why your current situation may already hold savings without waiting for any new program.

#### Key Takeaways

-   The Oct. 22, 2026 executive order proposes four housing changes, but none are in effect yet.
-   A pilot could cancel PMI automatically once eligible borrowers build sufficient equity in their homes.
-   Refinancing could get cheaper through title insurance waivers, appraisal relief, and fee reductions.
-   USDA and VA direct loans may see lower rates, but this does not apply automatically to all USDA or VA mortgages.
-   Don't wait for a headline to review your current mortgage, equity, and financing options.

## Automatic PMI cancellation applies only to future loans

Private mortgage insurance protects the lender, not you, when you put down less than 20 percent. For most conventional loans, borrowers pay PMI until they reach 20 percent equity, and today they must usually ask their servicer to have it removed. The executive order directs the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, to create a pilot program that would cancel mortgage insurance **proactively** once eligible borrowers satisfy equity requirements based on current market value ([White House](https://www.whitehouse.gov/presidential-actions/2026/10/decreasing-housing-costs-for-the-american-people)).

The order would let the agencies use automated valuation models and other data to assess a home's current value and identify borrowers who appear to qualify, rather than waiting for the homeowner to request cancellation ([White House](https://www.whitehouse.gov/presidential-actions/2026/10/decreasing-housing-costs-for-the-american-people)). It also directs servicers to notify borrowers promptly and to reduce unnecessary documentation, appraisal costs, and other administrative barriers.

Two important limits stand out. First, the pilot would apply **only to mortgages made after the pilot program is established**, not to existing loans. If you already pay PMI, nothing changes. Second, borrowers must still meet payment-history, equity, and safety-and-soundness requirements. So this is a proposal for future buyers, not an automatic break for current homeowners.

## The order aims to cut title and appraisal costs on refinances

Refinancing can be expensive, largely because of title insurance, appraisals, and various fees. The order directs the FHFA to turn its existing title insurance waiver pilot into a **permanent, nationwide program** for eligible refinance transactions ([White House](https://www.whitehouse.gov/presidential-actions/2026/10/decreasing-housing-costs-for-the-american-people)). Under it, an automated title review could be accepted in place of a lender's title insurance policy on qualifying refinances.

The order also asks the agencies to consider extending eligibility to loans above the current 80 percent loan-to-value limit, removing geographic limits, and certifying more title-assessment providers. It would allow waiving appraisals, income re-verification, and other documentation for limited cash-out refinances that lower a borrower's monthly payment, and it asks for reducing or eliminating loan-level price adjustments and other fees on those loans ([White House](https://www.whitehouse.gov/presidential-actions/2026/10/decreasing-housing-costs-for-the-american-people)).

None of this is guaranteed. The FHFA director must determine each step is in the best interests of the enterprises and the public, consistent with safety and soundness. And refinancing only makes sense when rates are low enough to justify the closing costs. That timing depends on your loan, not on any headline.

## A new task force will study manufactured housing for 180 days

The order creates a new Task Force on Manufactured Housing Innovation, co-chaired by the secretaries of Housing and Urban Development and the head of the FHFA ([White House](https://www.whitehouse.gov/presidential-actions/2026/10/decreasing-housing-costs-for-the-american-people)). Its job is to recommend ways to cut regulatory barriers and expand affordable factory-built housing, including standardizing permits and approving modern construction methods.

The task force has 180 days to deliver recommendations to the president. That means this section of the order is the slowest to move. It lays groundwork for future changes rather than any immediate benefit to buyers. Still, manufactured homes are among the most affordable paths to ownership, so any progress toward lower regulatory costs could matter for price-sensitive buyers down the road.

## Lower direct-loan rates do not apply to most VA or USDA borrowers

The order directs the secretaries of the Agriculture and Veterans Affairs departments to reduce interest rates on **single-family home loans made directly by their departments** ([White House](https://www.whitehouse.gov/presidential-actions/2026/10/decreasing-housing-costs-for-the-american-people)). This is the point most easily misunderstood, and it matters for veterans especially.

The vast majority of VA home loans are guaranteed loans, made by private lenders and backed by the VA. The order does not change those. It applies to the smaller group of **direct loans** that the departments originate themselves, such as the USDA's direct rural housing loans for low-income borrowers and the VA's Native American Direct Loan program on trust land ([HousingWire](https://www.housingwire.com/articles/trump-order-mortgage-insurance)). So if a loan officer tells a veteran that this order lowered VA rates across the board, that claim is overstated.

Even here, the departments must set and implement the new rates before any borrower sees a change. It is a direction to act, not an immediate reduction in anyone's monthly payment.

## Don't wait for a headline to review your mortgage

My advice after 15 years in this business: don't let a headline decide when you act. These changes are proposals. The FHFA must build the PMI pilot, the title program must be made permanent and nationwide, and the agencies must write the rules. That takes time, and eligibility will be narrower than the headlines suggest.

Meanwhile, your current situation may already offer savings. If you put down less than 20 percent and your home has appreciated, you may already have enough equity to have PMI removed under existing rules, no new program needed. If rates have moved in your favor since you bought, a refinance could lower your payment today. None of that requires waiting for the order to be implemented.

I'm Virginia Fargo, providing No Hassle Home Loans through Empire Home Loans in Scottsdale, Arizona. I help homeowners, homebuyers, and real estate professionals sort through mortgage options with clarity and confidence.

Have questions about your current mortgage or refinancing options? I'm here to help. **Schedule a consultation directly on my calendar** [here](https://calendar.empirehomeloans.com/virginia) or reach out to me at Empire Home Loans in Scottsdale, Arizona, and I'll walk you through your equity, your rate, and what actually makes sense for your situation.

Virginia Fargo, providing No Hassle Home Loans, the trusted mortgage consultant, home loan advisor in Scottsdale & Across Maricopa County, the leading mortgage broker dedicated to helping consumers save money specializing in home loans, first-time homebuyers, relocation, affordability and self-employed borrower financing.

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