What's your loan amount? Did she mention any points?

What's your loan amount? Did she mention any points?
Its hard to believe that you can get such rate if your loan amount is just $80K.
But if there is no other lien on your property, you try to get HELOC to pay off current loan. At this time, the interest rate for HELOC is about 3%. Beware it is an adjustable rate. It can be changed every 3 months. If your loan amount is really that small, I do not see any problem to do it with HELOC.