So why does "no cash out, refinance the costs of the loan" not include the reserves? I mean, I understand why, but I'm grumpy. Aside from incurring some additional liability, which still isn't anywhere near the assessed value of the house or even a substantial part of the equity I have, the idea was to drop no money now. $950 is not "no money".

It's the same %^&%^*&mortgage company. Keep the escrow money you have now instead of cashing it out when the old loan is paid off. How hard is this?

$950 is not "no money".

Well jeez, how else do you expect the mortgage company owner to make his boat payments?

I'm pretty sure that I understood everything up to ``why does''.

By loaning me the money and charging me the interest on it. They're not making anything on this money, they can't spend it. It's escrow for taxes and insurance.