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FHA Mortgage Refinance Rates vs. Conforming Interest Rates

If you’re considering an FHA mortgage refinance you might wonder if you’re paying more for the FHA home loan when it comes to your interest rate. It’s true that FHA home loans cost more because you’re required to pay for Private Mortgage Insurance; however, it’s a tradeoff accepting higher costs in exchange for easier qualification requirements. Here’s an article from Dan Green at TheMortgageReports.com that explains the difference between FHA and conforming mortgage rates:

The FHA offers a 30-year fixed rate mortgage. So does Fannie Mae and Freddie Mac. However, people tend to assume that these mortgages are alike; that a 30-year fixed is a 30-year fixed is a 30-year fixed. It’s not. That would be like saying a car is a car is a car. Beyond their 30-year amortization schedules, the 30-year fixed rate mortgage products from the FHA, and from Fannie and Freddie are hardly similar.


Dan’s advice for choosing between an FHA or conforming mortgage refinance is to evaluate the rates and fees on paper. Your broker can help you do this, if you find the right person to arrange your mortgage refi. Find the right sort of mortgage broker and you’ll be able to take advantage of today’s best refinance rates without paying points or unnecessary fees.

You can learn more about getting the lowest refinance rates for your next home loan without paying lender junk fees by checking out my free Underground Mortgage Videos.

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