If not paying PMI now, if refinance and underwater, then will have to pay PMI?

Tips and Deals Forums Home Mortgage If not paying PMI now, if refinance and underwater, then will have to pay PMI?

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      I am considering whether or not to refinance our loan for a home purchased in 2010. *The loan was essentially an 80/20 loan to avoid PMI, so there is a first and a second. *The loan is now a Freddie loan. *Based on the county assesor for the value of our home based on the property taxes–we are slighly underwater between 5-10% of what we paid in 2010. *If we refi I believe we can lower our interest rate by at least a point but am wondering since we do not have any equity in our home, will we be forced to pay PMI (as we are going to have to combine our 1st and 2nd loan into one payment)? *Since we also have no or negative equity, I am assuming we can only refi under the Obama MHA plan. *Also I’m not sure what the cost we would have to pay for the refi would be.

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      Thanks.

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