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FHA refinance rates

On Tuesday, September 27, 2022, the national average 30-year FHA refinance APR is 7.04%. The average 30-year fixed FHA mortgage APR is 7.07%, according to Bankrate's latest survey of the nation's largest refinance lenders.

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Today’s FHA refinance rates

The table below brings together a comprehensive national survey of mortgage lenders to help you know what are the most competitive FHA refinance rates. This interest rate table is updated daily to give you the most current rates when choosing an FHA refinance home loan.

Product Interest Rate APR
30-Year FHA Rate 6.17% 7.04%
30-Year Fixed Rate 6.75% 6.77%
20-Year Fixed Rate 6.74% 6.77%
15-Year Fixed Rate 5.95% 5.99%
10/1 ARM Rate 6.13% 6.24%
7/1 ARM Rate 5.95% 6.24%
5/1 ARM Rate 5.01% 6.70%
30-Year VA Rate 6.42% 6.63%
30-Year Fixed Jumbo Rate 6.78% 6.79%
15-Year Fixed Jumbo Rate 5.97% 6.00%
7/1 ARM Jumbo Rate 6.06% 6.12%
5/1 ARM Jumbo Rate 4.94% 6.44%

Rates as of Tuesday, September 27, 2022 at 6:30 AM

What is an FHA refinance?

An FHA refinance is a refinance of an FHA loan in which you change the interest rate and/or other terms of the loan. FHA is short for the Federal Housing Administration, which is part of the U.S. Department of Housing and Urban Development. The FHA loan category began in the 1930s to boost home sales. The U.S. government doesn’t make the loans, but but rather insures them.

“The program was created for low- to moderate-income first-time homebuyers that have less established credit and are interested in lower down payment options,” explains Robert Heck, head of origination at Morty, a mortgage technology platform.

FHA refinance rates and loans are available to those who put down less than 20 percent for their down payment. (Borrowers can put down as little as 3.5 percent.) Because of this lower down payment, all FHA mortgage holders are required to pay into the FHA-run mortgage insurance fund. “This requires an upfront payment that can be financed into the loan amount as well as monthly insurance payments,” Heck says. “The amounts required vary upon down payment percentage.”

If you’re considering an FHA refinance, you’ll want to monitor FHA refinance rates, since they fluctuate. There are several variables to consider when you’re deciding between 20-year or 30-year conventional mortgage rates and FHA refinance rates. Both kinds offer fixed- and variable-rate mortgages, and interest rates can vary based on the FHA lender you select, your credit score and the market. Regardless of what loan option you choose, it’s important to include all of the expenses associated with your mortgage (HOA fees, mortgage insurance and homeowners insurance) to determine what fits comfortably in your budget.

The availability of FHA refinance rates today can be good news for borrowers who think they can’t qualify for a loan. “Borrowers that have lower or less-established credit, as well as individuals looking to put less down, benefit the most from FHA loans, (as) 3.5 percent is the minimum down payment,” Heck explains. “But down payment assistance programs are allowed and can help reduce total closing costs further.”

Top 5 Bankrate FHA refinance lenders

  • Cardinal Financial Company – Best non-bank lender
  • Cherry Creek Mortgage – Best for low-credit score borrowers
  • – Best online lender
  • Fairway Independent Mortgage Corporation – Best overall


Bankrate helps thousands of borrowers find mortgage and refinance lenders every day. To determine the top mortgage lenders, we analyzed proprietary data across more than 150 lenders to assess which on our platform received the most inquiries within a three-month period. We then assigned superlatives based on factors such as fees, products offered, convenience and other criteria. These top lenders are updated regularly.

FHA refinance FAQs

How much does an FHA refinance cost vs. save?

How much you stand to save with an FHA refinance and how much it can cost depends on a variety of factors, including current FHA refinance rates and which kind of product you choose.

“Refinancing into a lower interest rate and shorter-term product will help you save on interest costs over the life of the loan,” Heck says, though it may not lower your monthly payments. He adds that if lowering monthly payments is the goal with a refi, it’s usually “most beneficial to do so in the first three to five years” from when you took out the original loan and restart the clock with a similar length of term. The reason: Interest charges are front-loaded into the early years of a mortgage, so you avoid the risk of paying a lot more in interest if you, say, refinance into another 30-year mortgage that only has 20 years left.

You’ll also want to evaluate the required mortgage insurance — both monthly and over the life of the loan — since that can be a significant expense. Closing costs are another factor and will vary according to your lender.

Regarding timing, it’s smart to shop FHA refinance rates and see how they trend over time. It’s always important to shop around to find a lender that suits your needs. This can mean banks or non-banks, which handle the majority of FHA loans.

FHA refinance and mortgage insurance premiums (MIP)

One downside of an FHA refinance loan is that all FHA loans require mortgage insurance, meaning a costly mortgage insurance premium paid by borrowers. By contrast, conventional loans only require insurance, known as private mortgage insurance (PMI), if the down payment is less than 20 percent of the property's purchase.

Each FHA loan requires both an upfront premium of 1.75 percent of the loan amount plus an annual premium of 0.45 percent to 1.05 percent. Exactly when these costs lapse is determined by the term of the loan, amount borrowed and the loan-to-value ratio.

These premiums can add significantly to the costs of the loan and your monthly payment. If you’re already paying PMI on your mortgage, this might not be as big a deal, depending on the relative costs, because you’re replacing one premium with another. But if you put 20 percent down on your existing mortgage and thus pay no insurance premiums — or you’ve built up enough equity to get your lender to cease to require these premiums — this FHA requirement could give you pause and prompt you to consider other financing avenues to avoid this cost.

Written by: Dhara Singh, mortgage reporter for Bankrate

Dhara Singh is a mortgage reporter for Bankrate. She is a former data analyst turned financial journalist who previously worked at Yahoo Finance, CNET, and JPMorgan Chase covering the housing and retirement beats.

Read more from Dhara Singh