The interest rate reduction refinance also known as va streamline refinance can be done only if you have utilized the va loan for the veterans before. Only then you are eligible for it. This scheme is also known as the VA-VA loan. When you feel that you are paying more interest rates than the present rates and also feel that the term for closing the loan is far longer, then the best option you can look for is the va streamline refinance.

You can reduce the term of your loan or you can decrease your monthly payments and increase your term. But you should make one thing for sure that the new interest which you are refinancing must be lesser than your previous rate of interest. Another thing you should make note is that you can’t get cash outs when you go for the va streamline refinance. If you need a cash out you can opt for the cash out va refinance which gives you a cash payment in hand. And however you spend it you won’t be questioned unless you pay your mortgage amount properly.

And another big advantage of va streamline refinance is that you get the escrow account of refunded back from your previous holder. And another important thing you should make sure is chose your mortgage payment mode carefully though in some exceptional cases you may end up paying more than your previous loan plan needed.