One thing to take into account here is your comment on the 110K CHA loan. I presume that's a California Housing loan, that is put in 2nd lien position behind your first mortgage? If so, it might deter lenders from doing a home equity line, given that they'd be in 3rd lien position, behind the CHA loan. Home equity rates are based on prime, which is still 3.25-3.5%. They are subject to change, when the Fed raises its overnight rate (likely to happen late this year or first part of 2016). The advantage of a home equity line is that there's far less cost than redoing the first and obtaining cash. You don't mention what your current interest rate is, and that's an important factor in whether a new first, or a second would be the best solution for you. Lots of info here, I know, hope it's at least given you some answers and perhaps a couple of items to consider.