I can’t say anything about someone’s mortgage being stupid – I still have an ARM…

Do you already have the balloon in your snowball, or is it along with your mortgage? Since the balloon has a FINITE deadline, I’d move that up on the priority list. The value of the house doesn’t matter – look at it as a “180 days same as cash” deal. If it’s not paid off by the end of the term, it will cost you BIG time…