Can I refinance my home

i reciently purchased a home. it appraised for 142,000. i got an fha loan with 3 % down. i am happy with the home, but i have a huge car payment-$600/month. i was wondering if i could refinance and pay off the car. i would like to use the money i am spending on my car to make improvements to the home. i can afford both payments, but at the end of the month i am really left with little money to make improvements. i also understand that if i include the car in my mortgage the interest may be tax deductible. thank you for your help.