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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Our HHI is the same as OP, but I am in much better financial shape. This is what I would do.
1. Sell the house (unless you believe that it will appreciate greatly. And even if you felt this way, you could invest in a REIT to profit from rising prices)
2. Rent a home for 3-5K a month. You can definitely get a decent home in this price range. You will save 2-4K a month without giving up much house. 
3. With the savings, I would contribute more to my retirement account or to college savings.

I agree that private schools are completely unnecessary when you are in a good school district.
I am surprised by the number of conservative people here who are criticizing OP.
While OP is in bad shape, there are many many others that are in worse shape. Buying a home 4X HHI is not uncommon. I would even say that it was typical during that time period. Everyone believed home prices would go up, not down. In hindset, it was a huge mistake, but if things had worked out, the house could have doubled in value. Timing is everything![/quote]

Thanks for your thoughtful post. We will lose about $100,000 by selling our house. Do you think it's worth it? We may not be able to save up enough ever for a down payment for a house. We'll be saving about $4000. Per month by dropping private school, although we'll have college tuition soon.[/quote]

Thanks for the compliment. Who cares if you will lose about $100,000. Every investing expert will tell you that this is a common mistake. People are overly obsessed about not taking a loss. Get over it and focus on the present and the future. The loss was in the past and you can't change that. Saving $4K a month is a great start. In a couple years, you should be ready to buy another house. But for now, renting is a pretty good deal. In the past, it was a bad idea, but recently, it is not a bad idea. Many people also overestimate the value of home ownership. As you know from experience, home ownership can be a very bad thing too.[/quote]

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