FHA streamline refinance calculator
If you have an FHA loan, a streamline refinance can lower your payment with no appraisal and light paperwork. Enter your balance, your current rate and MIP, and the new rate you are quoted, and this tool estimates your savings, the new upfront MIP, and whether your combined rate drops the 0.5 points FHA requires.
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What an FHA streamline refinance is
An FHA streamline refinance replaces your existing FHA-insured loan with a new FHA loan, usually to lower the rate. It earns the streamline name because FHA does not require a new appraisal, and in the non-credit-qualifying version it skips full income and credit underwriting. That makes it fast, and it means a home that has not gained value, or even lost some, can still refinance. The trade-off is that you stay in the FHA program and carry mortgage insurance on the new loan, so the real measure of benefit is your combined rate, not the interest rate alone.
The calculator above compares your current payment of principal, interest, and MIP against the new one, shows the upfront MIP and new balance, and flags whether your combined rate clears FHA's benefit test. Everything runs in your browser, so nothing you enter is sent to me or stored.
The combined rate, and why it decides your benefit
This is the part most calculators miss. FHA does not test your interest rate in isolation. It tests the combined rate, which is your note interest rate plus your annual MIP rate. For a fixed-rate loan refinancing into another fixed rate, without a term cut of three years or more, the new combined rate must be at least 0.5 percentage points below your current combined rate to count as a net tangible benefit.
That changes the math in your favor in a useful way. If your interest rate drops only a little but your MIP also falls, the combined rate can still clear the bar. The calculator computes both combined rates for you and flags whether the 0.5-point benefit is met. This standard is set in FHA Handbook 4000.1.
The upfront MIP, and the refund that softens it
FHA charges a new upfront mortgage insurance premium of 1.75% on the streamline, financed into the loan. On its own that is a real cost. But there is a key offset: if you refinance the existing FHA loan within three years, FHA refunds a declining portion of the upfront premium you already paid, on a schedule that shrinks each month across 36 months. Your lender calculates that refund and credits it at closing.
This calculator does not estimate the refund, because it depends on your original premium and exactly how long ago you closed. So treat the cost it shows as the conservative, no-refund version. If your current FHA loan is recent, your real net cost is likely lower, and I can pull the exact refund figure for you.
Seasoning and the other streamline rules
A few rules decide whether you can streamline yet:
- You already have an FHA loan. The streamline refinances an existing FHA-insured mortgage.
- Seasoning. At least 210 days must have passed since you closed the loan being refinanced, and you must have made at least six monthly payments on it.
- Payment history. Generally all payments on time for the past six months, with no more than one 30-day late.
- A benefit. The combined-rate test above, or moving from an adjustable rate to a fixed one, or a meaningful term reduction.
See my FHA streamline program page and the broader FHA loan guide, then send me your loan and I will tell you whether it pencils out.
What this estimate is, and what it is not
This tool estimates your savings, the upfront MIP, the new loan amount, and a break-even from the numbers you enter. It is not an approval, a pre-qualification, or a commitment to lend, and it does not pull your credit, verify your loan, or compute your UFMIP refund. Your lender confirms the MIP, the refund, and the net tangible benefit before the loan closes.
When you want a real picture, I price your actual FHA loan, pull the refund schedule, and tell you honestly whether the streamline saves you enough to be worth it.
Common questions
What is an FHA streamline refinance?
It replaces an existing FHA-insured loan with a new FHA loan, usually at a lower rate, without a new appraisal and, in the non-credit-qualifying version, without full income and credit underwriting. You stay in the FHA program and pay MIP on the new loan, so the benefit is measured by the combined rate, not the interest rate alone.
What is the net tangible benefit on an FHA streamline?
FHA measures the benefit using the combined rate, your note rate plus your annual MIP rate. For a fixed-to-fixed streamline without a large term reduction, the new combined rate must be at least 0.5 percentage points below your current combined rate. So a streamline can make sense even when the rate alone moves only a little, as long as your MIP also drops. This is set in FHA Handbook 4000.1.
Is there a UFMIP refund on an FHA streamline?
Yes, if you refinance the existing FHA loan within three years. FHA charges a new 1.75% upfront premium but refunds a declining portion of the upfront premium you already paid, on a schedule that shrinks each month for 36 months. Your lender computes the exact refund and credits it, so your real net cost is usually lower than a calculator that ignores it shows.
Do I need an appraisal for an FHA streamline?
Usually not. FHA does not require a new appraisal on a streamline, which keeps it fast and lets a home that lost value still qualify. The new loan amount is based on your current balance plus the upfront MIP, not a new value. A lender may still verify occupancy and your recent payment history.
How soon can I do an FHA streamline refinance?
FHA seasoning applies: at least 210 days must have passed since you closed the loan being refinanced, and you must have made at least six monthly payments on it, with a clean recent payment history. These requirements are in FHA Handbook 4000.1.
Wondering if a streamline is worth it?
Send me your current FHA loan and I will pull the UFMIP refund, run the combined-rate benefit, and tell you honestly whether the refinance saves you enough to bother.