Monthly payment examples below are for a loan amount of $275k. Taxes and insurance not included within the estimate; actual payment amount will be greater.
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Rates are current as of 8:19 AM UTC on September 13, 2025. Refinancing may cause finance charges to be higher over the life of the loan.
What factors determine your FHA refinance rate?
FHA interest rates are affected by a variety of things. Some you can influence; others you can’t. Let’s review a few.
Credit score
A higher credit score predicts it’s more likely a loan will be paid back. That means you’re considered a lower risk and may get a lower interest rate.
Debt-to-income ratio (DTI)
When less of your income goes toward debt, the more you have to pay your mortgage. So a lower DTI can also mean a lower interest rate, because the risk you can’t pay is lower.
Market conditions
The Federal Reserve (the central bank of the U.S.), inflation and the housing market all affect refinance rates for FHA mortgages.
Pros and cons of an FHA refinance
Pros
Take cash out. You can refinance from or to an FHA loan and use your home’s equity to take cash out.
Pay your mortgage off sooner. If you want to be mortgage-free faster, you can refinance your FHA loan to a shorter term.
Lower your monthly payment. You can refinance an FHA loan to lengthen your term, which is a way to lower your mortgage payment.Cons
There are costs for getting a new mortgage. Just like when you bought your home, you pay fees and closing costs when refinancing, around 3-6% of the loan amount.
Your monthly payment will increase if you’re refinancing to take cash out, because your loan amount will increase.
You’ll still have to pay mortgage insurance premiums if you’re refinancing an FHA loan and getting another FHA loan.
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FHA loan refinance rates frequently asked questions
Because you get a new mortgage when you refinance, the process is similar to getting a mortgage when you buy a home.
- Start an application or contact us so we can learn about your goals and your existing mortgage.
- If refinancing looks right for you, we’ll walk you through your options.
- You’ll start the process of getting your mortgage.
- You may need an appraisal and will likely need to provide some documents.
Closing your loan for a refinance can be less complicated than buying a home. You may not need any cash at closing because costs are often rolled into the new loan. And many of our clients close from their own home using a computer and smartphone.
For refinancing an FHA to another FHA loan, you could qualify at Rocket Mortgage if your details are close to these general guidelines. Note that guidelines can differ between FHA loan types (like jumbo), and for refinancing to a different kind of loan.
- 580 credit or better unless you’re taking cash out. If you’re not using the cash for debt consolidation, the minimum credit is 620.
- Less than half of your pre-tax income goes to pay debt.
- You’ve had the FHA loan you want to refinance long enough – generally 6-12 months depending on the kind of refinance.
If you have any late mortgage payments in the last year, you may not qualify. As always, the best way to find out if you qualify is to talk to us or apply, because everyone’s situation is unique.
That’s exactly what our Home Loan Experts help you figure out when you apply to refinance. They’ll ask about your goals, look at your current mortgage and see what makes sense financially for you.
Rocket Mortgage offers a variety of loans for refinancing your home. When you apply to refinance, a Home Loan Expert will help figure out which one is best for your situation. Some of your options include:
- Refinancing your FHA loan to another FHA loan.
- Refinancing your FHA loan to a different kind of loan.
- An FHA Streamline for people who already have an FHA loan and want to just change their loan length or interest rate.
Learn about FHA loans
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FHA loan limits: How much can you borrow in 2024?
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FHA streamline refinance: Pros, cons and rates
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How to refinance FHA to conventional loan
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FHA cash-out refinance: A how-to guide
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FHA loans: Requirements, loan limits and rates
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FHA loan limits: How much can you borrow in 2024?
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FHA streamline refinance: Pros, cons and rates
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How to refinance FHA to conventional loan
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FHA cash-out refinance: A how-to guide
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FHA loans: Requirements, loan limits and rates
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FHA loan limits: How much can you borrow in 2024?
7-minute read
FHA streamline refinance: Pros, cons and rates
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How to refinance FHA to conventional loan
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FHA cash-out refinance: A how-to guide
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