Refinance Home with Lien

[Biz101]

What is the name of your state (only U.S. law)? Iowa

I own a small business which has $9,900 left on a $120,000 loan. I also have a $60,000 Line of Credit for the business. Both loans have a lien on my personal home mortgage. I would like to refinance my mortgage to pay off the remaining $9,900 business loan and to reduce my interest rate (currently 7.5%). The mortgage is not with the same bank I use for business, but since the bank I use for business controls the liens, they said I could move my mortgage to them, they would subjegate the liens to do so.
My question is: If the business were to go south, would I be better protected to not lose my home if I did not have my home mortgage with the business bank, assuming that if the business went south, I kept the current mortgage payments ongoing.