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[quote=Anonymous][quote=Anonymous][quote=Anonymous]OP here: we did refi our first mortgage so the interest rate is about 4 percent and our payment with property tax is $5669. but we have a second loan for about 130,000 and it's at 9 percent and the refi bank wouldn't roll it in to the first loan. That payment is $1303. If we sell we'd end up paying maybe 60,000 to the realtor and maybe $30,000 in closing costs, not to mention moving costs. We'd also lose our mortgage interest deduction which is pretty significant.

To a previous poster. I doubt we could sell for more than about 1.25/1.27m[/quote]

This is the best time for you to get out of this mess. If you hold on, there is a significant risk that you're gonna ruin your life with the amount of mortgage you have to pay (unless your HHI is extraordinarily high).
I don't understand why many people think mortgage interest deduction is valuable. This deduction is not free. You have to pay interest in the first place to get it and it doesn't count towards your principle. 
Interest deduction is valuable only when you have the cash to make investments that can earn a higher return than your mortgage interest rates, which seems not your case.[/quote]

I don't really understand your point. Our MID is about 80,000 so it lowers our taxable income by that amount. Also, we'd spend/lose about 100,000 just moving. Our HHI is 290,000. What I'd really like to do is refi our second mortgage but I'm told 2nd note holders don't do that and really almost no one even finances second notes anymore .[/quote]

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