Dh and I have a split mortgage on our house. Our first mortgage is for $305,000 at 6.5% and our 2nd mortgage is for $82,000 at 10.5%. We have a 3 year prepayment penalty which would bring us out to October of 2008. We also took out a home equity loan for $30,000 at a rate of 11.5% or some ridiculously high rate like that but at the time we needed the $$. Unfortunately they did not do a complete appraisal, just a driveby. So I tried to refinance the mortgage in with the home equity loan about 2 months ago and had them come out to do an actual appraisal...well, now we owe about $30,000 MORE than what our house is worth. My question is what can we do about this besides coming up with the $$ to pay off the equity loan??? Is there anything??? We are paying $2800 on our first and 2nd mortgage and $388 on our equity loan right now and it is literally KILLING us!!!!