Trump Order May Cut Homebuyers’ Mortgage Costs by Thousands

Key Takeaways

• A new executive order signed by President Donald Trump could help homebuyers save thousands of dollars in closing costs.

• The order directs mortgage giants Fannie Mae and Freddie Mac to look for and automatically end mortgage insurance for some homeowners.

• Some borrowers who refinance may also avoid paying the lender’s title insurance, which could trim thousands from closing costs.

People planning to buy a home with less than a 20% down payment, or refinance an existing mortgage, may benefit from a new Trump administration executive order.

The order targets several fees tied to home-loan closings. It includes measures affecting mortgage insurance and lender’s title insurance for certain low-risk refinancing loans. It also creates a task force aimed at simplifying manufactured-home construction and reducing costs. The first two provisions could save borrowers thousands in some cases.

Mortgage Insurance

The mortgage insurance provision applies to buyers who put down less than 20% and must pay mortgage insurance on their loans.

Under the order, the Federal Housing Finance Agency would run a pilot program to identify loans that qualify and automatically cancel mortgage insurance when cancellation criteria are met. In practice, that usually means the loan has been paid down to an 80% loan-to-value ratio.

The program would apply only to new mortgages backed by Fannie Mae and Freddie Mac, the government-sponsored enterprises that support most home loans in the United States.

Homeowners whose coverage is ended through the program could save hundreds of dollars each month.

Mortgage insurance protects lenders if a borrower defaults and usually costs between 0.46% and 1.5% of the loan amount, depending on credit quality, according to the Urban Institute. That can amount to hundreds of dollars a month. For instance, a $300,000 mortgage with 1% PMI would cost about $250 per month.

The program may overlap with a 1998 law that allows homeowners to ask for cancellation once they reach an 80% loan-to-value ratio and requires automatic cancellation at 78%.

Refinancing Title Insurance

Another part of the order expands a pilot program launched in 2024 that lets some buyers skip the lender’s title insurance on low-risk refinancing loans. That insurance protects the lender if liens or other claims against the property emerge after the original purchase.

The FHFA estimated in 2024 that borrowers who were able to avoid that coverage could save between $500 and $1,500 in closing costs.

The administration’s action echoes a Biden-era push to reduce home-loan closing costs. In 2024, the Consumer Financial Protection Bureau opened a study into mortgage closing expenses, which had reached a median of $6,000 by 2022.

The bureau described many of those expenses as “junk fees,” saying homebuyers often have little ability to control them or shop around for lower prices.

Since then, the bureau has not provided additional updates on the study and has not issued press releases since January 2025. The Trump administration has sharply reduced the CFPB’s scope, cutting its operations and dismissing most of its staff. The bureau did not reply to an email seeking comment.