When To Refinance
If you think that refinance might be a good option for you to consolidate debt, you should pay special attention to the interest rate and the loan amount since these two issues will determine whether refinancing your home loan is convenient or not.
A lower interest rate with a similar repayment program would lower your instalments and thus you would have extra money for repaying your debt sooner.
The same thing can be achieved if you can get a higher loan amount.
If you can obtain a lower interest rate by refinancing your mortgage, if you can get a longer repayment schedule and thus lower monthly payments or if you can get all the extra money you need by refinancing for a higher amount, then refinance is the right option for you.
If none of these benefits can be obtained by refinancing your home loan, then you should reconsider refinancing.
There are other options like unsecured or secured personal loans and home equity loans and lines of credit that can help you consolidate your debt. You should also check when considering refinancing that the previous home loan does not have a prepayment penalty. Otherwise you might lose all the money you were going to save by refinancing your mortgage.