Help! Need a 2nd opinion....Hi,I have a single mortgage, ARM, set to adjust for the first time in Jan 2010, that is currently at 9.35%. My house is in a fairly low end neighborhood and it is only 900 sq ft, 2 bd, 1ba. I am paying $1800/mo. The rate is high because originally the loan was 103% LTV. Then right when our value caught up we did not have the money to refi and a few months later everything started going backwards. Now we have about a 15-20,000 gap between what we owe and what our house is worth, with us on the losing end. We have $20,000 cash from a settlement. We are in the process of getting an appraisal and then we are going to put the $20,000 down on the new loan, FHA with a fixed rate, to get our payment lower and to have more of the money we pay actually eat into the principal instead of all interest. Is this a good idea? We did not know what else we could do, and we do not want to continue to throw money away on this loan where only $90 a month actually goes towards our house. We do not plan to live here more than 2-3 years longer. We have seriously outgrown this house.Please advise, suggestions and ideas will be helpful. Thanks! July 15 2008 - US1YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.