Refi Strategy… seeking advice

Question : I have primary mortgage and a HELOC at 2 different banks.I’m considering to refinance and possibly consolidate the 2 mortgages into 1 loan to reduce monthly payment amount. Below is my current situation

My credit: excellent, full-time employed.
1st mortgage principal balance: 236k (5.25% fixed 30yr conventional) $1930/month
Escrow: Tax $4754, Hazard Insurance $590
2nd mortgage HELOC balance: 64k (6.83% fixed interest) $520/month
Home Value: 347K

When I contacted my primary mortgage, I was told that I would not qualify for consolidation refi because this is considered ‘cash out option’ and the LTV will exceeds 80%. So, I am proceeding to refinance only the primary mortgage (subject to agreement of 2nd lender for subordination).

Are there other options I can consider to reduce my monthly payment? Should I look into FHA (not sure if I qualify for this)? I am not interested in ARM.

Any advice/ideas will be appreciated!

Answer :
I would probably redo both loans, a 277,600 1st (or whatever 80% provides) and a new HELOC for the balance – most major banks offer HELOCs with adjustable rates in the mid 4′; if you attack the balance on the HELOC, you won’t have much rate adjustment risk.