The October 22, 2026 executive order "Decreasing Housing Costs for the American People" does not change your mortgage today. It lets the federal housing finance regulator ask Fannie Mae and Freddie Mac to pilot easier mortgage insurance cancellation and cheaper refinances. If you already have private mortgage insurance (PMI), the rules you can use now are the long-standing ones: request cancellation at 80% of your home's original value.
Key takeaways
- The order was dated October 22, 2026, and says the FHFA Director "may" direct Fannie Mae and Freddie Mac to run the pilots, so nothing is guaranteed yet.
- The mortgage insurance pilot would apply only to mortgages made after the pilot starts, so it does not help most current homeowners.
- Current federal rules let you ask to cancel PMI at 80% of original value; servicers must end it automatically at 78% if you are current.
- The order also asks the FHFA Director to consider refinances above the current 80 percent loan-to-value limit and lower fees, with savings passed to borrowers.
- The only deadline in the order is 180 days for a manufactured housing task force to send recommendations.
On October 22, 2026, the White House signed an executive order called “Decreasing Housing Costs for the American People.” The headlines make it sound like mortgage insurance is about to get cheaper for everyone. The actual text is more limited, and it’s worth knowing the difference before you plan around it.
The short version: the order mostly asks federal agencies to try things. It doesn’t change your loan, your rate, or your monthly payment today. But you may already have a way to drop your mortgage insurance, and that’s where real money is.
What does the executive order actually say?
The order has a few parts. Here is what each one does, based on the text posted by the White House.
| Section | What it says | What it means for you |
|---|---|---|
| Mortgage insurance | The FHFA Director “may” direct Fannie Mae and Freddie Mac to run a pilot. It would use automated valuation models (computer estimates of a home’s value) to find borrowers who may qualify for proactive PMI cancellation. | Only applies to mortgages made after the pilot starts. No start date is given. |
| Manufactured housing | Creates a task force led by HUD and FHFA. Recommendations are due within 180 days. | Ideas only for now. |
| Title insurance | The FHFA Director may expand a title acceptance pilot nationwide. An automated title review could replace the lender’s title insurance policy on eligible refinances. | A possible cheaper refinance later. Savings must be passed to borrowers. |
| Refinance limits | The Director is to consider refinances above the current 80 percent loan-to-value limit, and waiving some appraisals and income checks on limited cash-out refinances. | Not in effect yet. |
| USDA and VA direct loans | The Agriculture and Veterans Affairs secretaries are to reduce rates on their direct single-family home loans, subject to law and available appropriations. | Applies only to those direct loan programs. |
The order also says it creates no enforceable rights. In plain words: it’s a to-do list for agencies, not a new benefit you can claim.
What is PMI, and why does it cost you money?
Private mortgage insurance, or PMI, is insurance you may have to buy on a conventional loan when your down payment is less than 20 percent. The Consumer Financial Protection Bureau explains that PMI protects the lender, not you. If you stop paying, the insurance covers the lender’s loss, but you can still lose your home.
It’s usually paid as a monthly premium, a one-time premium at closing, or both. Your Loan Estimate and Closing Disclosure show the amounts.
Can you cancel PMI today without the new order?
For many people, yes. The CFPB lays out the rules for conventional loans on a single-family primary home that closed on or after July 29, 1999:
- You can ask at 80%. When your balance reaches 80% of the home’s original value, you can ask your servicer in writing to cancel PMI.
- It must end at 78%. Your servicer must end PMI automatically when your scheduled balance reaches 78% of the original value, as long as you are current.
- There’s a hard stop at the midpoint. PMI must end the month after you reach the midpoint of your loan term, which is after 15 years on a 30-year loan, if you are current.
To ask early, you need a good payment history, no junior liens (such as a second mortgage), and you may have to show, usually with an appraisal, that your home’s value hasn’t fallen below its original value. FHA and VA loans work differently, so ask your servicer.
What does this look like in dollars?
This is an illustration, not a quote. We assume a $300,000 home, a 10% down payment ($30,000), a 7.00% fixed rate and a 30-year loan. The PMI cost of $100 a month is a made-up round number; your own cost is on your loan documents.
- Loan amount: $300,000 − $30,000 = $270,000
- Monthly principal and interest: about $1,796
- 80% of original value: $300,000 × 0.80 = $240,000
- 78% of original value: $300,000 × 0.78 = $234,000
Using a standard payment schedule, the balance falls to $240,000 after about 101 payments (8 years and 5 months) and to $234,000 after about 115 payments (9 years and 7 months).
That gap is 14 payments. At $100 a month, 14 × $100 = $1,400 is what you’d pay if you wait for automatic cancellation instead of asking at 80%. Extra principal payments get you to 80% sooner, and the CFPB says you can ask early when extra payments reach that mark.
Who benefits from the new pilots?
The mortgage insurance pilot would apply only to mortgages made after it starts. So if you already have a loan, it won’t change your situation. If you’re buying or refinancing in the future, the idea is that a servicer could spot, using a computer estimate of your home’s value, that you may qualify to drop PMI, and notify you promptly with less paperwork and fewer appraisal costs.
The refinance ideas are also “may” and “consider” language. The order asks about going beyond the current 80 percent loan-to-value limit on some refinances. For a $300,000 home, that limit means a loan of up to $240,000 under today’s limit. Whether that changes, and by how much, hasn’t been decided.
Does this lower mortgage rates?
No. The order doesn’t set rates for private lenders. The only rate language is for USDA and VA direct single-family loans, and it’s limited by existing law and available funding. If you want to see how rates change a payment, use the mortgage calculator. For the current picture, see our post on mortgage rates and the Fed.
What to do now
- Find your PMI details. Look at your Closing Disclosure or your servicer’s PMI disclosure form for the first date you can ask to cancel.
- Check your balance against 80%. Compare your current loan balance to 80% of your home’s original value. The amortization calculator can show when you’ll cross that line.
- Check for other conditions. You must be current on payments and have no second mortgage. Ask your servicer whether they require an appraisal.
- Send a written request. The CFPB says to ask your servicer in writing once you’re eligible.
- Think twice before refinancing for PMI alone. Test the numbers with the refinance calculator, including closing costs, since the order’s cheaper refinance ideas aren’t in place yet.
- Watch for follow-up. Fannie Mae, Freddie Mac and the FHFA would need to announce any pilot. Wait for their announcements before assuming anything has changed.
Nothing here is personal financial advice. Your loan type and your servicer’s rules decide what applies to you.
Frequently asked questions
What does the October 2026 housing executive order do?
It directs or encourages several housing-cost steps. The FHFA Director may ask Fannie Mae and Freddie Mac to pilot proactive mortgage insurance cancellation and an automated title review for some refinances. It also creates a manufactured housing task force and asks the Agriculture and Veterans Affairs secretaries to reduce rates on their direct home loans, subject to law and available funding.
Can I cancel my PMI right now?
Possibly. For conventional loans on a single-family primary home closed on or after July 29, 1999, you can ask your servicer in writing to cancel PMI when your balance reaches 80% of the home's original value. You need a good payment history, no second mortgage, and sometimes an appraisal showing the value hasn't dropped. Your PMI disclosure form lists the first eligible date.
When does PMI end automatically?
Your servicer must end PMI when your scheduled balance reaches 78% of the original value, as long as you are current on payments. PMI must also end the month after you reach the midpoint of your loan term, which is after 15 years on a 30-year loan, even if the balance has not reached 78%. You still need to be current.
Do FHA and VA loans follow the same PMI rules?
No. The Consumer Financial Protection Bureau says FHA and VA loans have different requirements than conventional loans, so you should ask your servicer how your loan works. The PMI cancellation rules in this post apply to conventional loans, and different rules also apply if your lender pays the mortgage insurance for you.
Will this order lower mortgage rates?
The order does not set or change mortgage rates for private lenders. Its rate language applies only to the Agriculture and Veterans Affairs direct single-family home loan programs, and only subject to applicable law and available appropriations. For everyone else, the order aims at fees and paperwork, such as mortgage insurance, appraisals and title costs.
Does the order guarantee a cheaper refinance?
No. The order says the FHFA Director may direct Fannie Mae and Freddie Mac to expand a title acceptance pilot and consider options such as waiving some appraisals. Those steps need to be carried out first. It also says cost savings must be passed through to borrowers and that lenders must tell borrowers about them.