An escrow refund is your own money coming back, and the "two months of no payments" pitch is your own money too, just moved around. Your impound account holds funds set aside for property taxes and insurance. When a refinance pays off your existing loan, whatever sits in that account gets refunded to you. Cash you already deposited, returned. The skipped-payments piece works the same way. You skip two payments, the interest for those months rolls into your new loan balance, and you fund a brand-new escrow account on the new loan. You pay for all of it, just at a different table. Before weighing any of that, check the refinance itself. If your current rate is already lower than anything a new loan can realistically offer, there's no legitimate reason to refinance, and no honest company should be mailing you to do it. A VA refinance also carries the VA funding fee (confirm the current amount; it's waived for borrowers exempt due to a service-connected disability), and any refinance should show you a genuine net tangible benefit. FHA and VA borrowers get blanketed with these mailers because the loans are easy to spot in public records. Our advice: don't respond to them. If a refinance ever makes sense for you, run it from your own numbers. That's exactly what we do in the free Roadmap conversation.