I see I'm a bit late to the original post, and you've already paid off one car and bought another in cash. Less debt = good.
The consolidating mortgage idea does
not seem like it's in your best interest.
Check out this site to see if it's good for your particular case. It would only make sense if you absolutely knew that you weren't going to move or refinance for quite a while.
However, regarding starting your business, I think it's important to look at the risk it involves, especially with upfront costs. If, unfortunately, it were to go belly up in 6 months or so, how much money do you estimate that would you lose? How does it compare to the amount you have left in savings? Are there lost wages from the venture? Also, what is the potential upside/profit?
Of course, these may be very difficult to answer, but I guess the bottom line is if you could lose your business and still be in good financial shape, then maybe you should take the plunge sooner rather than later. If things did work out you might have years worth of extra income. But since you have a family to take care of (Congratulations!!! I'm a proud new father of a 4 month old!) you have to be careful about not running your families finances into the red.
I'm assuming you've thought about all this, but since I didn't see it mentioned, thought I'd throw it into the mix. Regardless of what you choose, good luck!