UFMIP (Upfront Mortgage Insurance Premium) is 1.75% of the loan amount, charged on every FHA loan at closing. On a $300,000 loan, that is $5,250. Most borrowers roll it into the loan balance rather than paying it out of pocket at closing. UFMIP is not negotiable — it is a fixed FHA requirement.

FHA Refinance Closing Costs: Full Breakdown

Q: What are typical FHA refinance closing costs?

FHA refinance closing costs typically run 2–5% of the loan amount for a full rate-and-term refinance. On a $300,000 loan, expect $6,000–$15,000. This includes UFMIP (1.75% of loan amount), lender fees, title insurance, appraisal ($400–$600), and prepaid costs (taxes, insurance). FHA Streamline is cheaper — often $2,000–$5,000 — because it skips the appraisal.

Q: Can I roll FHA closing costs into the loan?

UFMIP can always be financed into the new loan. Other closing costs can also be financed if the new loan amount does not exceed FHA's LTV limits (97.75% for rate-and-term refinances). Rolling costs in increases your loan balance and monthly payment, so calculate the break-even before deciding.

Q: How much does an FHA Streamline Refinance cost?

FHA Streamline closing costs are typically $2,000–$5,000. The UFMIP still applies (1.75% of loan) but is reduced if your current loan is under 3 years old — you get a credit for unused MIP. No appraisal saves $400–$600. Lender fees can be minimized by choosing a no-closing-cost Streamline (higher rate in exchange).

Q: Can you get a no-closing-cost FHA refinance?

Yes — lenders offer no-closing-cost FHA refinances by rolling fees into the rate (you accept a slightly higher rate, and the lender uses the yield spread premium to cover costs). This makes sense when you plan to refinance again in 2–4 years or want to preserve cash. The trade-off is a permanently higher rate until you refinance again.

FHA Closing Cost Overview

FHA refinance closing costs consist of two layers: the FHA-mandated costs (UFMIP and annual MIP) and the same lender and third-party fees you would pay on any refinance. The FHA layer is fixed — you cannot negotiate UFMIP. The lender layer is fully negotiable.

Cost Category	Typical Range	Negotiable?
UFMIP (upfront MIP)	1.75% of loan	No — fixed FHA rule
Origination / lender fee	$500–$2,500	Yes
Appraisal (full refi only)	$400–$700	Slightly
Title insurance (lender)	$500–$1,500	Shop title companies
Title search / recording	$100–$400	Limited
Prepaid interest (10–30 days)	$300–$900	Via closing date choice
Escrow setup (taxes/insurance)	2–3 months reserves	No

Total for full FHA refi: $6,000–$15,000 on a $300,000 loan (2–5%). UFMIP alone is $5,250 on that loan. Use the FHA Refinance Calculator to model your specific numbers — it includes UFMIP and breaks out how we calculate each figure.

UFMIP: The FHA-Specific Cost

UFMIP (Upfront Mortgage Insurance Premium) is 1.75% of the base loan amount on every FHA refinance. It is charged regardless of your credit score, equity, or loan size. It protects the FHA Mutual Mortgage Insurance Fund (HUD) — not you.

$200,000 loan: UFMIP = $3,500
$300,000 loan: UFMIP = $5,250
$400,000 loan: UFMIP = $7,000
$500,000 loan: UFMIP = $8,750

Most borrowers roll UFMIP into the new loan rather than paying it at closing. Rolling it in adds to your loan balance and extends your break-even, but avoids the upfront cash outlay. If you pay it out of pocket, you can deduct it as a prepaid finance charge on some loans (consult a tax advisor).

FHA Streamline UFMIP refund: If your current FHA loan is less than 3 years old, you receive a partial UFMIP refund when you Streamline refinance. The refund decreases monthly, reaching zero at 3 years. This makes Streamline especially attractive within the first 18–24 months of your existing FHA loan.

FHA Streamline vs. Full FHA Refinance Costs

Cost Item	FHA Streamline	Full FHA Rate & Term
UFMIP	1.75% (net of partial refund)	1.75% of loan
Appraisal	Not required	Required ($400–$700)
Income verification	Typically waived	Full documentation
Lender fees	$500–$2,000	$500–$2,500
Title insurance	May use existing (cheaper)	New policy required
Total out-of-pocket range	$1,500–$4,500	$3,000–$8,000+

Read the full FHA Streamline Refinance guide to see whether you qualify and what the net tangible benefit requirement means for your situation.

How to Minimize FHA Closing Costs

Roll costs into the loan — keeps cash in pocket; use our guide on rolling costs in to see the break-even
Shop lender fees aggressively — origination fees are negotiable; get at least 3 Loan Estimates and compare Section A fees directly
Choose a no-closing-cost option — accept a slightly higher rate in exchange for lender credit covering all fees
Streamline rather than full refinance — if eligible, Streamline saves the appraisal and reduces title costs
Time your Streamline within 3 years — to maximize the UFMIP refund credit

Frequently Asked Questions

What are typical FHA refinance closing costs?

2–5% of the loan amount for a full rate-and-term refinance. On $300,000: $6,000–$15,000. UFMIP alone is $5,250. FHA Streamline is cheaper at $1,500–$4,500 because it skips the appraisal.

What is FHA UFMIP?

Upfront Mortgage Insurance Premium — 1.75% of the loan amount on every FHA loan. Not negotiable. Most borrowers roll it into the loan. If your current FHA loan is under 3 years old, you get a partial refund when you Streamline refinance.

Can I roll FHA closing costs into the loan?

Yes — UFMIP always; other costs can be financed if the new loan stays within FHA LTV limits (97.75% for rate-and-term). Rolling in costs increases your loan balance and monthly payment, so run the break-even first.

How much does an FHA Streamline Refinance cost?

$1,500–$4,500 typically, depending on lender fees and loan size. UFMIP applies but is reduced by a refund if the existing loan is under 3 years old. No appraisal saves $400–$700 compared to full refinance.

Can you get a no-closing-cost FHA refinance?

Yes — lenders roll closing costs into the rate (lender credit). You pay no cash out of pocket but your rate is slightly higher. Best when you plan to sell or refinance again within 3–5 years before the higher rate cost exceeds the fee savings.

Related Calculators and Guides

Mortgage Savings Calculator — compare total savings for FHA streamline vs. conventional refinance
Break-Even Calculator — enter UFMIP + total closing costs to see your exact break-even timeline
PMI Removal Calculator — once at 80% LTV you can exit MIP via a conventional refinance; model the timing
Loan-to-Value Calculator — your LTV determines whether an FHA-to-conventional switch saves money on MIP

Sources & References

Editor's Note — July 2026: This article was reviewed for accuracy in July 2026. Formulas, program eligibility rules, and guidelines reflect current requirements. For the latest mortgage rates, see Freddie Mac's weekly PMMS survey. Borrowers who locked rates of 6.5%–8.0% in 2022–2023 may find the current environment (6.5%–7.0%) worth running numbers on — use the break-even calculator or the Decision Center.

FHA Refinance Closing Costs: What to Expect in 2026

FHA Closing Cost Overview

UFMIP: The FHA-Specific Cost

FHA Streamline vs. Full FHA Refinance Costs

How to Minimize FHA Closing Costs

Frequently Asked Questions

Related Calculators and Guides

Calculate Your FHA Refinance Costs

Sources & References