Also, the financial aspect is just one part of the total consideration.  I've been in my house for ten years, and we've made a life here.  We have quite a bit of stuff in this house.  It would be a <i>huge</i> pain in the ass to move, as well as disruptive to my family, my son's school life, etc.<p>Being underwater today doesn't imply being underwater next year.  A home's value may return, so long as you didn't buy at some idiotically high price.