is refinance a good option for us?

Sweety1719, If you can lock in at a rate at 5.375% or better, this makes sense. You'll be accomplishing a few things; lower payment, converting your equity loan to a fixed rate (I assume is based on the prime rate +) as the prime rate can only go up in the coming months, a single payment by combining the loans. Cash flow, reduced exposure (to a rising prime rate) and convenience are the reasons you would do this. The fact that your combined liens are under 80% of the value of your home also make you more likely to get the most favoable rate without having to pay mortgage insurance. I'd be happy to give you a detailed customized quote. Please call or email me.-Sean401-965-9384 cellswheelan@tmgltd.biz email