I have a lot of credit card debt, but a good credit rating. I want to refinance my home. Should I include the debt in the refinance amount and pay it off. or should I try to get a separate loan and pay it off before I apply for the refinance loan?
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A lot depends on your long term goals and where you are in your life. As an example, if your goal is to increase cash flow now, a refinance that pays off your credit cards will do this. What is important is to not borrow on those cards again.
If you want to get out of debt in the fastest way, a consolidation loan that pays them off and that you in turn pay off in three to five years may be the answer. Hopefully a lower rate on the consolidation will allow for this. The difference is that you are not taking this credit card debt and refinancing it with your home over a long term. Consolidations often require collateral. That may or may not be available.
A median may be a second loan on your home that is secured by the home and pays off in that three to five years or even in a ten year period. You have less exposure to longer term debt and use the equity in your home. This will afford a better rate, you'd save in the long run and improve your cash flow. That improvement can be used for retirement, investments, or other debt reduction.
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A lot depends on your long term goals and where you are in your life. As an example, if your goal is to increase cash flow now, a refinance that pays off your credit cards will do this. What is important is to not borrow on those cards again.