Paging GFunk or any anyone in the home mortgage lending business

My friend, Bill Clover is looking to potentially consolidate two loans into one.

His first loan (primary mortgage, conventional) was originally for 15 years at 2.875 %. He has 10 years left before he reaches the loan's maturity date.

His second loan (Home Equity Loan) was originally for 15 years at 4.49 %. He has 12 years left before he reaches the loan's maturity date.

The loans were taken out at different times by he and his wife, Lucille.

If he were to consolidate his loans, he said he would refinance into a 10 year loan term, so it would keep his first loan term the exact same as it is today, but shave off 2 years on his second loan.

First question. Is this considered a "cash-out refinance loan" even though he all the equity will remain in his home, once the second loan is paid off?

His first mortgage loan to value is approximately 49 %. His cumulative loan to value (factoring in 2nd loan) is approximately 59 %.

Second question. Is it possible to obtain an interest rate at or near his current rate of 2.875 % in order to make this something he should further look into?

I currently see 2.88 % rates for 10 years on Zillow, with approximate closing fees estimated around $1500.

Suggestions? He doesn't have an account, but will be reading your replies.