Which to choose?

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My situation...I just bought a house in July of 2008. Yes, value has gone down, but we put over 30% down, and have strong equity in the house. The loan we got was 30 year 5.875%. My old broker from bofa called me to see if I was interested in refinancing to 30 year 5%, but I was not ready to pull the trigger. Wish I did. Our loan is $450,000 so that would have been a great deal. So I have been actively looking to refnance if I can once again get to 5% or lower. This mortgage broker just offered me a 4.75% 30 year fixed on $417,000 of my loan, but then the rest through a HELOC. Not my first choice, and there is about $3000 in fees (which was comporable to BOFA Offer) but not sure how to compare that to a single loan. How do I evaluate this? He says he is a wholesale mortgage broker, so curious how that relates to normal mortgage brokers. He wrote me a GFE based on my current snapshot. Any advice? Is this better than a $450,000 loan at 5% ?