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?