You have a variety of options for your mortgage refinance.  Refinancing to combine a first and second mortgage into one payment saves time and effort that occur when you make payments to multiple lenders. Consolidating a first and second mortgage also opens a junior mortgage lien position on your home if you decide to take out a home equity loan or line of credit in the future.

Lower payments. Perhaps you want to ease the burden of making payments on a 15-year mortgage loan by refinancing with a 30-year mortgage. Stretching out your loan term reduces your monthly payments. If you refinance to lower your payments, however, make sure your new mortgage doesn't impose a prepayment penalty.

Consolidating other debts. You may want to refinance in order to pay off an auto loan or credit card debt. After all, the interest on a mortgage or home equity loan is tax-deductible in most cases, while the interest on consumer debt is not.