Mary Bowerman, and Sean Rossman

USA TODAY

Corrections & Clarifications: An earlier version of this story misidentified the action taken by the Trump administration.

President Donald Trump blocked an Obama administration policy Friday that would have reduced the cost of mortgages for millions of home buyers.

Here’s a look at what Trump’s first executive action means for your mortgage:

What happened?

In the first hour of Trump's presidency, the U.S. Department of Housing and Urban Development sent a letter to lenders, real estate brokers and closing agents suspending the 0.25 percentage point premium rate cut for Federal Housing Administration-backed loans. The new rates, announced on Jan. 9, would have gone into effect on Friday.

Who does the cut affect?

The action will affect millions of home buyers with an FHA-backed mortgage. FHA backs about 16% of the country's new mortgages. FHA loans offer easier credit requirements, lower down payments and smaller closing costs, according to the U.S. Department of Urban Housing and Development.

William E. Brown, the president of the National Association of Realtors, said the cut allowed more people to qualify for a mortgage because more borrowers could meet the debt-to-income ratio required to borrow money.

How much will it cost home buyers?

That cut would have saved home buyers about $29 a month on a $200,000 mortgage. U.S. Sen. Chuck Schumer, a Democrat from New York, said the cut equaled an average of $500 per year.