refinancing help!?

My wife and I bought our first home a year and a half ago. This December our fixed rate is ending on one of the loans. We have two mortgages…one at 7% and one at 11%…the 7% one has its fixed term ending. The total of the two loans is $ 213,000 and the house was appraised for $ 215,000 when we bought it.

My credit has gotten better since we bought the house and my wife and I make over 6 figures combined. Is there anyway we will be able to refinance in November even though the appraisal of our home has probably gone down and we are now upside down in our mortgage? There is no way we could afford the new payments once the fixed rate is up.

Please let me know what our options are…Thanks in advance!
A little more info:

I do have a lot of credit card debt that was piled up from college and a personal loan that was taken out during college as well…I have a great plan in place that will have all of these paid off by September of this year…paying the mortgage is not the problem…the problem is if the rate goes up because of the ARM then my payments may double…then I would have a problem paying. But currently paying is not a problem…I have never been late on ANYTHING.

I know the 11% is high because that is the second mortgage…we did an 80/20 mortgage so that is why I have two mortgages…I would love to refinance both into a lower rate if possible.

Again making the current payment is not a problem but if the interest rate doubles from what I have now then I have a problem

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