Current FHA Refinance Rates for February 2023

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What Is an FHA Refinance?

An FHA refinance is a type of mortgage refinance loan that’s backed by the Federal Housing Administration. There are a variety of different types of FHA refinance loans that allow you to refinance your rate and term, cover the cost of home improvements, or turn your home’s equity into cash.

These types of loans are issued by private lenders, but are insured by the government. So they’re considered less risky by lenders and are typically easier for borrowers with lower credit scores to qualify for. FHA refinance loans typically have higher loan-to-value (LTV) limits, so it can be easier for homeowners with less equity to refinance with an FHA loan.

What Are Today’s FHA Refinance Rates?

On Thursday, February 02, 2023 according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the average 30-year FHA refinance rate is 5.590% with an APR of 6.510%.

Current FHA Refinance Rates

ProductInterest RateAPR
30-Year Fixed Rate6.410%6.430%
30-Year FHA Rate5.590%6.510%
30-Year VA Rate5.710%5.900%
30-Year Fixed Jumbo Rate6.420%6.430%
20-Year Fixed Rate6.390%6.410%
15-Year Fixed Rate5.700%5.730%
15-Year Fixed Jumbo Rate5.740%5.760%
10-Year Fixed Rate5.720%5.750%
5/1 ARM Rate5.350%7.150%
5/1 ARM Jumbo Rate5.370%6.900%
7/1 ARM Rate5.940%6.680%
7/1 ARM Jumbo Rate6.100%6.350%
10/1 ARM Rate6.240%6.570%
ProductInterest RateAPR
30-Year Fixed Rate6.360%6.370%
30-Year FHA Rate5.560%6.460%
30-Year VA Rate5.710%5.820%
30-Year Fixed Jumbo Rate6.350%6.370%
20-Year Fixed Rate6.350%6.370%
15-Year Fixed Rate5.660%5.680%
15-Year Fixed Jumbo Rate5.710%5.730%
10-Year Fixed Rate5.650%5.680%
5/1 ARM Rate5.430%7.390%
5/1 ARM Jumbo Rate5.500%7.380%
7/1 ARM Rate5.830%6.780%
7/1 ARM Jumbo Rate6.020%6.340%
10/1 ARM Rate6.150%6.680%

Rates as of Thursday, February 02, 2023


These rate averages are based on weekday mortgage rate information provided by national lenders to, which like NextAdvisor is owned by Red Ventures. These averages provide borrowers a broad view of average rates that can inform borrowers when comparing lender offers. We feature both the interest rate and the annual percentage rate (APR), which includes additional lender fees, so you can get a better idea of the overall cost of the loan. The actual interest rate you can qualify for may be different from the average rates quoted in our rate table. But these rates are useful for giving you a benchmark to use when comparing loan offers by giving you a sense of how the type of mortgage and the length of the repayment term impacts your interest rate and APR.

Who Qualifies for an FHA Refinance Loan?

The qualification standards for an FHA refinance loan are a bit different depending on the type of refinance. And certain FHA refinance loans require you to refinance from an existing FHA mortgage to qualify, such as an FHA streamline refinance.

If you’re refinancing from an FHA loan into a new FHA loan, the process may be simpler. In some circumstances, you may not need an appraisal or credit check in order to qualify. And there are advantages to refinancing from conventional loan to FHA loan, such as potentially higher LTV limits.

When an FHA Refinance Makes Sense

An FHA refinance makes sense when it can help you save money or if it aligns with your financial goals. A rate and term refinance could be a good way to reduce your interest rate, loan term, or monthly payment.

When you refinance your mortgage, there will be upfront fees in the form of closing costs. These fees are typically 2% to 5% of the loan balance, which can be thousands of dollars. So you’ll need to be able to reduce your refinance rate or monthly payment enough to offset these costs over the long term.

You may also want to refinance your mortgage to pay for home repairs or improvements. This can be done with an FHA cash out refinance or FHA 203(k) refinance loan. You won’t be able to exceed the FHA loan limits for your area but these loans can have less strict qualification standards than with a conventional cash out refinance.

What Are the Pros and Cons of an FHA refinance?

FHA refinance mortgages can be simpler and easier to qualify for than a conventional refinance. But they also come with extra fees that you might not need to pay with other refinancing options.


  • Higher LTVs

  • Lower credit score required

  • No employment verification or credit check with a streamline refinance

  • Easier to qualify for with blemishes on your credit report (e.g., bankruptcy, foreclosure, etc.)


  • Upfront mortgage insurance premium

  • Can’t always refinance from a conventional loan

  • Must abide by the FHA loan limits

  • More guidelines to navigate, stricter appraisal standards

What About an FHA Streamline Refinance?

If you have an existing FHA loan, the FHA streamline refinance program offers a quick and easy to way refinance your mortgage. You may be able to skip the appraisal, credit check, or verification of your income. Instead, your payment history can qualify you for the loan, as long as you’ve made on-time payments for the preceding 12 months.

To qualify for an FHA streamline refinance, you’ll need to be saving money in some way. The FHA calls this requirement a “net tangible benefit.” The net tangible benefit requirement varies depending on the loan, but it typically involves securing a lower interest rate, going from an adjustable rate to a fixed rate, or extending your loan term to lower your monthly payments. With an FHA streamline refinance, you cannot receive more than $500 cash back through your refinance.