Yes, I understand that it is not a no cost loan. That is what I was trying to convey when I shared what our mortgage balance is now and what it will increase to after the refi. We will be adding $4000 to our balance with 3.5% interest over 30 years. It doesn’t sound great, but on paper it works in our favor. Not by a ton, but some is better than none.

As far as I understand, the $2000 is a refund from our existing escrow account that will be due to us within 30 days after closing.