Stupid question but clearly I'm not too good with this stuff (refinancing)

So we started the process to refinance with the bank with which we currently hold our mortgage, but I called around today to get ideas of whether the closing costs they quoted me to do a traditional loan were high.

I called one bank who gave me a better rate and closing costs were about $8K (my bank told me $12K! but everytime I call someone gives me a different number) but with the new bank I would need to give them 6 months of taxes in escrow and a years worth of homeowners.

So, my stupid question is, is this in additional to continuing to pay my taxes and homeowners, or am I essentially just laying it out up front? So if my taxes are say $10K and homeowners $2 - am I just giving them $6K in additional to having to pay my taxes and homeowners over the course of 6 months.

Also, bank 2 charges $300 for an appraisal - bank 1 did not charge at all. What is typical?

Re: Stupid question but clearly I'm not too good with this stuff (refinancing)

You will continue to pay your taxes each month even though you prepaid into escrow. At the end of the year they generally audit all the escrow accounts and if you have too much left over they will send you a refund.

We just did our refi and we paid I think 350 for the appraisal

Re: Stupid question but clearly I'm not too good with this stuff (refinancing)

You are paying taxes and insurance upfront and will pay in your monthly payments also. They have to pay the taxes in advance so you have to pay upfront too.

We just refied and paid $300 for appraisor.