Refinance Primary and HELOC into new mortgage or Not?

[Roy Gutierrez]

Hi guys,

I have my primary with a mortgage that I owe $113K at 3.75% but it's an FHA loan and paying about $77 month on the FHA insurance that is for life. I also have a HELOC tied to this house, I owe 48K at 4.04%, so the low rates right now are keeping the HELOC payments decent. My estimation is that the house is worth about $260K, I got quoted from a couple of places to refinance and pay off the HELOC into a new mortgage at 3.75% (about $2,200 in closing costs), so basically I would have the same rate, have closing costs BUT I would get rid of the PMI (if the house appraises to the amount I think) and if the rates go up I won't have to worry about the HELOC going up as well.

Any advice if there are other options? 

Thank you in advance!