You do not always have to pay off your existing second mortgage when refinancing your first mortgage, although it may take longer for the loan process. There may be a fee charged by your 2nd lien holder and there may be overnight fees incurred. In order to refinance your first mortgage we would need to get a subordination agreement, which is an approval from your second lien holder, to allow the refinance of your first mortgage to go through. Maintaining a second mortgage does have an impact on the rates and costs associated with the new first mortgage. Your Loan Officer can go over the implications of maintaining a 2nd mortgage or HELOC.