On your loan, the interest portion is less than $1000/month. Assuming you refi’d the whole $260,000 into the loan, the payment may be pushing $2000, but half of that is principle.
Where are you going to live for $1000 a month?
If you like it or can rent it, keep it. Prices may come down, but you won’t care. If you crunch price to income ratio, they’re still high, but even as they come down to reality, by 2011, the price at bottom will still be higher than the price you paid, both in nominal and inflation adjusted dollars.
