We keep getting these offers to lower our interest rate on our FHA mortgage. From what I read on the FHA website, FHA entitles and encourages FHA borrowers, like me, to refinance when the interest rate lowers. I believe it says that if the interest rate is .5 lower than what we pay we are entitled to refinance at no cost to us. And they allow 3 refinances a year...or more, I can't recall. It also mentions that you can refinance if it means a lower payment to borrowers. Has anyone done this? There are even mortgage brokers who watch for the interest rates to fall and will call the FHA borrower and notify them that they can refinance. U have gotten cards from my mortgage company stating that it is required that they notify us that we could save money at a lower rate. I guess that these mortgage brokers make money each time they sell your mortgage to a lender. That's why they are in the business of refinancing at a lower rate. I believe there will be another interest rate cut 1/30 and so I will wait to see how low my rate will go. I guess the whole idea behind this is that FHA guarantees the loan if the borrower defaults. So FHA is wants that interest rate to drop in case they have to repay your loan. Not a bad deal, I suppose.