What should I do?Hi,I'm in a bit of a pickle. My house is worth $155k bought new 2 years ago. I owe $70,600 at 4.625% 30 year fixed (made extra payments) and have a second mortgage HELOC with $13K on it at 3.5% variable w/ $30k limit. I just got a statement last month my escrow has a $2,418 shortage and I have $53,500 in home business debt that I'm trying to lower the payments on. I could: a) Refi for $94k at 4% fixed 30 year, keep my HELOC and put $24K on it including the escrow shortage, and have $20k in business debt. I would pay down the business debt asap and then focus on the HELOC. Monthly payments would be about $1300 a month. b) Refi for $140k at 4% fixed 30 year, lose my Heloc, and add PMI for about $116 per month. Monthly payments would be about $1230 a month. I'm trying to lower my monthly cost, but while I'm looking for a job (my wife still has hers) we've been using the Heloc as a savings/checking account. If I do nothing… my Monthly payment will be $1200 plus $160 on HELOC plus $700-800 with business debt. Anyone with any better ideas? September 19 2012 - Blacklick00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.