What to expect to pay for a VA refinance

[Dustin Little]

I have been receiving letters in the mail to refinance my current VA loan. After about the fifth letter I caved and called the lender, Low VA Rates. I called assuming I would catch them right away in a gimmick. But, it seemed to be pretty legit. However, after filling out the preliminary paperwork I watched all the fees add up. Now I know there is a 2% VA fee, but now I am being told there is additional fee associated to the VA loan of .5%. My $121,500 current balance is subject to raise to $127,000 with a promise that my current lender will be mailing a check for $1500 to $2000 for escrow. Does this sound right? $5500 seems like a lot.

Thanks for any advice.