Could Refinancing Your Mortgage Become Cheaper in Phoenix or Scottsdale? Trump's New Housing Executive Order Explained

Updated October 23, 2026 | Phoenix, Scottsdale & Maricopa County, Arizona

Could your monthly mortgage payment get smaller without waiting for interest rates to drop?

President Donald Trump signed a new executive order on October 22, 2026, titled Decreasing Housing Costs for the American People.

The order targets several expenses associated with homeownership, including private mortgage insurance (PMI), refinancing closing costs, title insurance, and manufactured housing.

For homeowners and homebuyers in Phoenix, Scottsdale, Mesa, Chandler, Gilbert, Tempe, Glendale, Peoria, Surprise, and communities throughout Maricopa County, these changes are worth understanding.

But there's an important distinction: The executive order does not automatically reduce your mortgage payment or interest rate today.

Here's what may change, who could benefit, and what you can do right now.

1. Could Phoenix and Scottsdale Homeowners Automatically Eliminate PMI?

Short answer: A proposed federal pilot program could make it easier for eligible borrowers with future conventional mortgages to eliminate private mortgage insurance as their home equity increases.

Many Arizona homebuyers purchase homes with less than 20% down and pay PMI as part of their monthly mortgage payment.

The executive order directs the Federal Housing Finance Agency (FHFA), subject to specified conditions, to develop a pilot program through Fannie Mae and Freddie Mac.

Under the proposed program:

• Automated property valuations could help identify homeowners with sufficient equity.

• Eligible borrowers could have PMI canceled proactively.

• Mortgage servicers could notify borrowers when they qualify.

• Certain documentation and appraisal-related barriers could be reduced.

Here's an example:

Imagine you're a Scottsdale homeowner paying $175 per month in PMI.

If you qualify to eliminate that expense, you could potentially save:

• $175 per month

• $2,100 per year

That's real money that could go toward household expenses, savings, or other financial goals.

Important: The proposed pilot would apply only to mortgages originated after the pilot is established. Existing homeowners should not assume their PMI will automatically disappear under this new program.

What can Arizona homeowners do today?

If you currently pay PMI on a conventional mortgage, you may already have options to request cancellation.

Eligibility depends on factors such as your loan balance, property value, payment history, loan terms, and investor requirements.

Mortgage expert tip: Before refinancing solely to eliminate PMI, compare the cost of refinancing against the possibility of removing PMI from your existing loan.

2. Will Refinancing Become Cheaper in Phoenix and Scottsdale?

Short answer: Potentially. The executive order directs FHFA to consider expanding programs that could reduce certain closing costs and documentation requirements on eligible conventional refinances.

If you've considered refinancing your home in Phoenix, Scottsdale, or elsewhere in Maricopa County, you know closing costs can influence whether refinancing makes financial sense.

The executive order addresses several potential changes:

Lower title-related costs

Eligible refinances could use approved alternative title-risk assessments instead of requiring a traditional lender's title insurance policy.

Fewer appraisal requirements

Some qualifying refinances that reduce monthly payments could receive appraisal waivers when existing property data supports them.

Simplified income verification

Certain eligible borrowers could benefit from reduced income re-verification requirements.

Reduced mortgage pricing fees

FHFA is also directed to consider reducing or eliminating certain loan-level price adjustments and other fees on qualifying transactions.

These changes could make some refinances less expensive, but eligibility and implementation details still need to be established.

Example: A Phoenix homeowner considering refinancing

Suppose you have a $350,000 mortgage at 7.50% on a 30-year fixed-rate loan.

If you qualified for a new 30-year loan at 6.50%, your approximate principal-and-interest payment would change as follows:

Illustration only. Assumes equal loan amounts and new 30-year terms. Excludes closing costs, taxes, insurance, mortgage insurance, and any change in loan balance or repayment timeline. Rates are hypothetical, not current rate quotes.

The important question isn't simply whether you can obtain a lower interest rate.

It's whether the total financial benefit outweighs the costs and fits your long-term plans.

Mortgage expert tip: A refinance should be evaluated using the total monthly payment, closing costs, break-even period, remaining loan term, and long-term interest expense.

3. Could Manufactured Homes Become More Affordable in Maricopa County?

Short answer: The executive order establishes a federal task force to explore ways to reduce barriers to manufacturing, approving, and financing factory-built homes.

Manufactured housing can offer an alternative path to homeownership for buyers concerned about affordability.

The order establishes a Task Force on Manufactured Housing Innovation, which has 180 days to provide recommendations.

The task force will examine ways to:

• Reduce duplicative federal inspections and approvals.

• Improve consistency across federal housing programs.

• Encourage modern factory-built housing methods.

• Support affordable housing production while maintaining safety and consumer protections.

What does this mean for Arizona homebuyers?

Manufactured homes may provide opportunities for buyers who want to own a home without purchasing a traditional site-built property.

However, financing requirements can vary significantly based on:

• The home's construction date.

• Whether the property includes owned land.

• The home's foundation and condition.

• The borrower's credit and financial qualifications.

• The specific mortgage program.

Important: The executive order does not immediately change FHA, VA, USDA, or conventional manufactured-home eligibility requirements.

As a mortgage broker, I help Arizona homebuyers explore manufactured-home financing options, including properties that may not qualify under traditional lender guidelines.

4. Are VA and USDA Mortgage Rates Going Down?

Short answer: The executive order directs the Departments of Veterans Affairs and Agriculture to reduce interest rates on certain single-family loans made directly by those departments, subject to applicable law and available funding.

This is an important distinction for Arizona veterans and rural homebuyers.

The order does not automatically lower interest rates on every VA-guaranteed or USDA-guaranteed mortgage originated through a private lender.

If you're a veteran considering a VA purchase, VA cash-out refinance, or VA Interest Rate Reduction Refinance Loan (IRRRL), your available options still depend on the applicable loan program and lender pricing.

Similarly, USDA direct loans and USDA guaranteed loans are different programs.

Mortgage expert tip: Before making a financing decision based on this announcement, confirm which program applies to your loan and whether any new benefit has actually been implemented.

5. Should Phoenix and Scottsdale Homeowners Wait to Refinance?

Not necessarily. Waiting for federal policy changes or lower interest rates is not always the best financial strategy.

Every homeowner's situation is different.

If you're currently paying a higher mortgage rate, carrying expensive debt, paying PMI, or looking to improve monthly cash flow, reviewing your existing options may be worthwhile.

Consider these questions:

1. What is my current mortgage interest rate?

2. How much equity do I have?

3. Am I paying private mortgage insurance?

4. How much would refinancing cost?

5. How long would it take to recover those costs?

6. Would refinancing improve my overall financial position?

The goal is not simply to refinance.

The goal is to make a mortgage decision that improves your financial situation.

6. What Should Phoenix & Scottsdale Real Estate Agents Know About the New Housing Executive Order?

If you're a Realtor working with buyers and sellers throughout Maricopa County, the October 2026 executive order creates opportunities for valuable conversations with your clients.

Here are three ways to use this information in your business:

1. Reconnect with past buyers who may be paying PMI

Some homeowners may already qualify to request PMI cancellation under existing conventional mortgage guidelines. Helping clients understand their options is a meaningful way to stay connected after closing.

2. Educate buyers about manufactured housing

Manufactured homes can offer another path to homeownership for qualified buyers. While the executive order doesn't immediately change financing guidelines, agents can benefit from understanding which properties may qualify under existing programs.

3. Help homeowners evaluate refinancing opportunities

A homeowner doesn't necessarily need to wait for new federal programs to explore mortgage savings. Reviewing existing financing options could uncover opportunities to reduce monthly expenses or better manage household cash flow.

My advice to Realtors: Don't promise future mortgage savings based on an executive order. Instead, connect your clients with a knowledgeable mortgage professional who can explain what financing options are available today.

I'm Virginia Fargo, providing No Hassle Home Loans. I work with real estate professionals throughout Phoenix, Scottsdale, and Maricopa County to help identify financing opportunities and address potential challenges early.

Have a buyer, seller, or past client with mortgage questions? I'm happy to be a resource for you and your clients.

Frequently Asked Questions About Trump's October 2026 Housing Executive Order

Does Trump's new housing executive order lower mortgage rates in Arizona?

No. The executive order does not directly reduce market mortgage interest rates. It focuses on potential reductions in certain mortgage expenses and directs agencies to address rates on specific government direct-loan programs.

Will PMI automatically disappear from my existing conventional mortgage?

Not because of the new pilot program. The proposed pilot applies only to mortgages originated after the program begins. Existing borrowers may still qualify for PMI cancellation under current rules.

Will refinancing no longer require title insurance?

Not for every refinance. The order addresses an expansion of alternative title-review procedures for eligible loans. Some transactions may still require traditional lender's title insurance.

Can I refinance without an appraisal in Phoenix or Scottsdale?

Possibly. Some conventional refinance programs already offer appraisal waivers for eligible properties and borrowers. The executive order could expand certain waiver opportunities, but approval is not guaranteed.

Does the executive order make manufactured homes easier to finance?

Not immediately. It creates a task force to recommend changes that could support manufactured and factory-built housing. Existing financing guidelines continue to apply.

Can a mortgage broker help me compare refinance options?

Yes. A mortgage broker can help evaluate loan programs, pricing, closing costs, and qualification requirements across available lending options.

The best mortgage option depends on your credit, equity, income, property, financial goals, and available loan programs.

Your Local Phoenix & Scottsdale Mortgage Resource

I'm Virginia Fargo, providing No Hassle Home Loans, a mortgage loan originator with Empire Home Loans.

I help homebuyers, homeowners, and real estate professionals throughout Phoenix, Scottsdale, and Maricopa County understand their financing options.

Whether you're purchasing your first home, exploring manufactured-home financing, refinancing to improve cash flow, or evaluating your home equity, my goal is to provide clear answers and practical mortgage solutions.

Wondering whether you could save money on your current mortgage?

Let's review your existing loan, available equity, and financing options to determine whether an opportunity exists today.

Sources and Additional Reading

• White House: Decreasing Housing Costs for the American People, October 22, 2026

• U.S. Department of Housing and Urban Development: Task Force on Manufactured Housing Innovation, October 22, 2026

• My original VOCE article: Could Refinancing Your Mortgage Become Cheaper?

This article is educational and reflects information available as of October 23, 2026. Proposed program changes are subject to agency implementation, eligibility requirements, and applicable laws. Loan programs, rates, terms, and eligibility are subject to change. All loans are subject to credit approval.

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.

Loan programs and guidelines are subject to change without notice. Not all borrowers or properties will qualify. Loan amounts, LTV, DTI, credit requirements, reserves, income documentation, mortgage insurance and property eligibility are subject to applicable program requirements and underwriting approval. Verify current guidelines before making financing decisions.

About Virginia Fargo

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.