I am not trying to avoid paying the existing 2nd morgage, but obviously without it's payoff, I will be able to borrow more money at this new re-fi. But, if I don't have to payoff the existing 2nd morgage will I get in trouble for having 3 morgages? I will easily be able to continue to pay all 3 of them.Thanks for all the replies. The bank has done their searches and only mentioned what they think is my only morgage. They must think the 2nd morgage is a credit card (Chase) and are not asking me to pay it off. I did not hide the information from them, I think they just misinterpreted it. I am happy with the situation and the loan amount that they approved for me and do not really want to pay the 2nd morgage if I do not have to, so am I still obligated to let them know they are going to actually give me a 3rd morgage?