FHA Refinance Rates
FHA Refinance Rates: what to know and how to act in 2026.
What to know
FHA refinance rates are often slightly lower than comparable conventional rates because the loans are government-insured, making them attractive for borrowers with lower credit. The catch is FHA loans carry mortgage insurance premiums. An FHA Streamline can lower your rate with no appraisal and minimal documentation.
What affects your refinance rate
- Your credit score and loan-to-value
- Loan term (15-year prices below 30-year)
- Rate-and-term vs cash-out (cash-out prices higher)
- Discount points you choose to buy
- The bond market and Fed policy — and lender margins, so compare quotes
Example payment by rate
| Rate | P&I on a $300,000 loan (30-yr) |
|---|---|
| 5.25% | $1,657 |
| 5.50% | $1,703 |
| 5.75% | $1,751 |
| 6.00% | $1,799 |
| 6.25% | $1,847 |
| 6.50% | $1,896 |
| 6.75% | $1,946 |
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Frequently Asked Questions
- FHA Refinance Rates — the quick answer?
- FHA refinance rates are often slightly lower than comparable conventional rates because the loans are government-insured, making them attractive for borrowers with lower credit. The catch is FHA loans carry mortgage insurance premiums. An FHA Streamline can lower your rate with no appraisal and minimal documentation.
- Are refinance rates higher than purchase rates?
- Rate-and-term refinance rates are usually similar to purchase rates; cash-out refinances price a bit higher because they are riskier for the lender.