Compare today's FHA refinance rates

How to find FHA refinance rates

NerdWallet's mortgage rate tool can help you find competitive FHA refinance rates tailored to meet your needs. Just enter some information about the type of loan you're looking for and you'll get a customized rate quote in moments, without providing any personal information.

What types of FHA refinance are available?

The Federal Housing Administration offers several types of refinances for FHA loans. Which one is best for you will depend on the goal of your refinance.

Simple refinance. A rate and term refinance from one FHA loan to another is often called a simple refinance. The FHA refers to refinances where any loan type is being refinanced to an FHA loan as a rate and term refinance, so long as no cash is taken out.

Streamline refinance. Streamline refinances make an FHA-to-FHA refinance easier by having fewer requirements. A credit-qualifying streamline refinance allows you to skip the FHA appraisal. A non-credit qualifying streamline refinance has even fewer hoops to jump through, because the lender doesn't perform a credit check. If you have a strong credit score and your debt is in check, a credit-qualifying streamline may be more beneficial, since you could get a better interest rate.

Cash-out refinance: With an FHA cash-out refinance, you refinance to a larger loan amount than what you previously owed on the mortgage. The difference between what you owed and the new mortgage amount goes to you in cash. One exception is a cash-out refinance used to buy out a former co-borrower, as in a divorce. In those cases, the FHA treats the cash-out refi as a rate and term refinance.

203(k) refinance: Similar to an FHA 203(k) loan, a 203(k) refinance allows you to roll the cost of repairs or upgrades to your home into your refi. The FHA has rules about what kinds of renovations can be financed with 203(k) funds and whether an FHA consultant has to sign off on the work. If that sounds like too much red tape for you, you may want to look into other options for paying for home renovations.

» MORE: FHA refinance basics

What are FHA refinance closing costs?

With an FHA refinance, you'll pay many of the standard refinance closing costs that you would with any loan type. For example, you'll pay the lender origination fee, an appraisal fee if required, recording fees and so on. These usually run between 2% and 6% of the amount you're refinancing.

You'll also pay fees that are specific to FHA loans. FHA refinancers pay an Upfront Mortgage Insurance Premium (UFMIP) at closing, just as with an FHA purchase. UFMIP costs 1.75% of the total loan amount. If you refinanced to a $200,000 loan, you'd pay $3,500 in UFMIP. (If you got your original FHA loan within three years of refinancing, you may get a partial refund for the UFMIP on your new loan.)

» MORE: FHA closing costs and ways to save

Can you refinance to get rid of FHA mortgage insurance?

If you have an FHA loan, you're going to pay FHA mortgage insurance premiums (MIP) for eleven years or for the life of the loan, depending on the size of your original down payment. For most borrowers, the only way to eliminate FHA mortgage insurance is to refinance from an FHA loan into a conventional loan.

In order to go from FHA to conventional, you'll need to be able to meet the qualification standards for a conventional loan. That means having a credit score of at least 620 — though a higher score could get you a lower interest rate — and a debt-to-income ratio no greater than 45%. You'll also need to have at least 20% equity in your home if you want to avoid having to pay private mortgage insurance, which is required on conventional loans if the homeowner has insufficient equity.

» MORE: When should you refinance your mortgage?

Learn more about FHA loans:

• FHA Loans: What You Need to Know

• FHA Refinance Loan Types

• NerdWallet's Refinance Calculator