Need help with refinancing an 80/20 mortgage...

msjbp
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I need some guidance on refinancing my home.I purchased in 2005 with an 80/20 loan, to avoid PMI. We purchased the home for $229K. My current monthly payment, including taxes and insurance, is $1,660K. The 80 is a 30yr fixed with a rate of 5.75%. The 20 is a Home Equity line with a Revolving APR of 5.5% and Lock 001 Beginning APR currently at 8.4%. Monthly payment is typically around $400.
Fannie Mae/Freddie Mac are not investors in my loan, so I am not eligible for HARP. When I called my loaner of the 30 yr fixed, they informed me I am not eligible for any other programs, but could possibly refinance.
In order to do this, my home needs to be appraised at $239,000. Zillow says it is currently worth $199K, where my latest market value from my 2011 property tax assessment is $232K.
If the home appraises for the $239K, we could refinance the 30 yr mortgage into another 30 yr with a rate of 4%. This would make my monthly payment $1385K. Closing cost is $32 fee, plus $425 appraisal fee, and title fees, which will range between $1200-1500 in my area. We have excellent credit, zero credit card debt, and have never missed a mortgage payment. We have never refinanced and are looking for some breathing room on a monthly basis.