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FHA refinance rates

On Sunday, December 10, 2023, the national average 30-year FHA refinance APR is 7.45%. The average 30-year fixed FHA mortgage APR is 7.37%, according to ... Bankrate's latest survey of the nation's largest mortgage lenders.

FHA refinance rates today

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 6.52% 7.45%
30-Year Fixed Rate 7.57% 7.59%
20-Year Fixed Rate 7.40% 7.42%
15-Year Fixed Rate 6.80% 6.83%
10/1 ARM Rate 7.66% 7.85%
5/1 ARM Rate 6.62% 7.68%
30-Year VA Rate 6.60% 6.80%

Rates as of Sunday, December 10, 2023 at 6:30 AM


What is an FHA refinance?

An FHA refinance is the process of replacing your current mortgage with a new loan. This might mean swapping an existing FHA loan for another FHA loan or other type of mortgage, or switching a non-FHA loan to an FHA loan. Ideally, the refinance gets you a lower interest rate, shorter loan term or both. You can also refinance to take cash out from your equity.

Types of FHA refinance loans

There are a few types of ways to refinance an FHA loan:

  • Rate-and-term or simple FHA refinance: Refinancing an FHA loan to adjust the interest rate and/or term with no cash out
  • FHA cash-out refinance: Refinancing an FHA loan to adjust the interest rate and/or term with cash out
  • FHA streamline refinance: Refinancing an FHA loan to adjust the interest rate and/or term without an appraisal, credit check or income verification

Pros and cons of an FHA refinance

Pros of FHA refinancing

  • Potential to lower your interest rate and reduce your monthly loan payment
  • Open to those with credit scores as low as 580
  • Streamline refinances available with no credit check or income verification
  • Cash-out refinance can provide you with funds needed for expenses like renovations

Cons of FHA refinancing

How to get the best FHA refinance rate

Among many factors, your credit score determines your mortgage rate. For the most competitive FHA refinance rate, you’ll need good to excellent credit, though you can still qualify with a score as low as 580.

Another factor is your debt-to-income (DTI) ratio. Generally, the lower your DTI, the better your rate.

Whenever you’re looking for a mortgage, shop around and compare multiple offers. Consider the interest rate as well as the annual percentage rate (APR). The latter accounts for the lender’s fees. When you’re refinancing, lower fees help you break-even sooner.

FHA mortgage refinance FAQ