I refinanced my mortgage last year using the HARP program. My 1st loan is now with QuickenLoans, and my 2nd is at BofA. For the refi last year, BofA subordinated their loan.

Approximate loan amounts: 1st - $355k; 2nd - $55k; current home value - $450k

QuickenLoans has a program where they pay most of the closing costs to re-fi again if the rates drop after closing a loan, but I am being told that a re-fi would trigger PMI because I don't have 20% equity.

Can't QuickenLoans simply re-fi the first without concern for the 2nd? Since QuickenLoans would hold the same risk ($355k), why would it matter that I owe > 80% in combined loans?

Thanks,
-Steve

You can either pay some of it off until you have 80%, or you can also take out a smaller 2nd loan to cover for the amount that it would take you to get to 80% LTV (loan-to-value ratio) so that PMI does not trigger.