The president’s new housing order could reduce mortgage insurance and refinancing expenses. But the savings aren’t available to everyone, and California’s high home prices remain a major obstacle.
For California families trying to buy a home, even a small reduction in monthly expenses can make a difference.
And for homeowners already stretching their budgets, getting rid of an extra $200 monthly charge could mean more money for groceries, utilities or savings.
President Donald Trump says his new housing order will help lower those costs.
But will it actually make owning a home more affordable?
The answer depends on your mortgage, whether you qualify for the proposed changes and when federal agencies put them into effect.
Trump signed the executive order on October 22, directing federal agencies to reduce certain mortgage expenses, make refinancing less costly and explore ways to expand factory-built housing.
Some borrowers could benefit. But the order does not immediately lower everyone’s mortgage payment or reduce home prices.
Could your mortgage insurance payment disappear?
One of the biggest changes involves private mortgage insurance, or PMI.
Many homebuyers who put down less than 20% on a conventional mortgage must pay this insurance every month. It protects the lender if the borrower stops making payments.
Trump’s order calls for a pilot program that would identify homeowners who qualify to cancel PMI as their home equity grows.
Home equity is the difference between what your home is worth and what you owe on the mortgage.
Imagine paying $200 a month for PMI. If that charge disappears, you save $2,400 a year.
That’s an example, not a guaranteed government benefit.
Here’s the catch: the proposed pilot would cover only mortgages made after the program begins.
The Federal Housing Finance Agency must first establish the program, subject to conditions in the order. As of October 22, it had not publicly announced a launch date or final eligibility rules.
If you already own a home, don’t assume your insurance payment will automatically disappear.
But you may already qualify to cancel it under existing law.
The Consumer Financial Protection Bureau explains that many borrowers can request PMI cancellation when their mortgage balance reaches 80% of the home’s original value. Automatic cancellation generally occurs when the balance is scheduled to reach 78%, provided the borrower is current.
Other conditions apply, and FHA mortgage insurance has different rules.
Refinancing could cost less
The order also targets fees homeowners pay when refinancing.
Refinancing means replacing your current mortgage with a new one, usually to obtain a better interest rate or change loan terms.
The administration wants to expand a federal program that allows certain refinances to use alternatives to traditional lender’s title insurance. It also calls for reducing some appraisal, paperwork and loan-related costs.
That could make refinancing cheaper for eligible homeowners.
Suppose refinancing would normally cost $4,000. If the changes eventually reduced those expenses by $1,000, the homeowner would pay $3,000 instead.
That’s a hypothetical example. The government has not promised a $1,000 discount.
And saving on closing costs doesn’t automatically mean refinancing is a good decision.
A new loan could carry a higher interest rate, extend the repayment period or cost more over time.
The order also directs the Agriculture and Veterans Affairs departments to lower rates on certain loans they issue directly. It does not establish a general rate cut for all VA-guaranteed or USDA-backed mortgages.
Will this make California homes more affordable?
This is where the challenge becomes much bigger.
California’s median existing single-family home price reached $899,720 in September 2026, according to the California Association of Realtors.
During the second quarter, only 19% of California households could afford a median-priced single-family home.
For families trying to save a down payment while paying rent, a reduction in mortgage fees may help. But it doesn’t solve the problem of home prices rising beyond what their incomes can support.
The problem isn’t limited to expensive coastal neighborhoods. Homebuying has become a major financial burden even in some of California’s less expensive counties.
The executive order also establishes a federal task force to recommend ways to expand manufactured and factory-built housing.
That could eventually help increase housing options. But recommendations are due within 180 days, and no immediate increase in California housing supply is guaranteed.
What should homeowners and buyers do now?
If you already own a home, check whether your mortgage payment includes PMI. Contact your mortgage servicer and ask when you may qualify for cancellation.
If you’re considering refinancing, compare written loan estimates from several lenders. Pay attention to the interest rate, closing costs, monthly payment and total cost over time.
And if you’re trying to buy your first home, don’t wait for the federal order to explore existing assistance.
California’s down-payment assistance programs can help eligible first-time buyers cover some upfront costs, although eligibility, loan terms and program availability must be checked.
Trump’s order could eventually make certain mortgage expenses smaller.
But for California families, the bigger question remains: Will those savings be enough to make a home affordable in the first place?
