Thinking about refinancing my VA mortgage, curious what others are doing

Escrow cushions are another one... lenders want to cover themselves, but you don’t need to let them hold more of your money than necessary.

Yeah, that escrow cushion thing bugs me every time. Last refi, they wanted two months extra “just in case.” I pushed back and they acted like it was set in stone, but it magically got reduced after a little back and forth. Also, I swear the “courier fee” is just someone’s lunch fund. Gotta watch those little line items - they add up fast.

Escrow cushions are always padded more than they need to be. Last time I refinanced, they tried to sneak in three months’ worth - said it was “policy.” I asked for the actual regulation and, surprise, suddenly it was negotiable. Those courier fees? Pure fluff, almost every time. Always worth a double-check before signing anything.

That’s interesting - I've noticed lenders often default to the highest cushion “just in case,” but it rarely matches what’s actually required. Out of curiosity, has anyone managed to get those escrow requirements reduced in writing, or is it always a verbal negotiation? I’ve seen some pushback when I’ve tried.

I’ve actually managed to get escrow cushions dropped a bit, but only after some back-and-forth and providing proof my tax/insurance bills were steady. It really came down to getting it in writing - never just a handshake deal. Did you try showing them previous years’ statements? Sometimes that helps, but I’ve had lenders dig in their heels regardless. Curious if anyone’s had luck with a different approach, like switching servicers or using a third-party escrow?

I tried switching servicers once, thinking it’d give me more control over the escrow, but honestly, it was just a hassle and didn’t change much. They still wanted a cushion. Never tried a third-party escrow though - didn’t even know that was an option. If you find a lender that’s flexible, hang onto them... most just stick to their own rules.