We own a home in Arlington, VA, and bought it in May '07. We owe more on the house than it's worth; we're watching these low interest rates and can't take advantage of it. Our banks (1st and 2nd) aren't open to a refi. Any suggestions?

If the first mortgage is within 80% of present value of the home, then I'd try to pay down the second lien... otherwise... just keep paying your mortgages and all other debts on time and wait it out.