My negative amortization loan?
The advantage of a negative am loan is that it keeps your payments low, and it sounds like you need low payments right now. I think that your best course of action is to keep your current loan for the next two years until the prepayment penalty expires. At that point, your wife will be working and you’ll be in a position to handle a larger payment. You will then be able to replace the negative am loan with a conventional loan that may have a higher payment but won’t result in negative amortization. In the meantime, you have 90K in equity so you’re not in danger of running out of equity. I think you may have made the right decision when you chose that negative am loan. The only proviso to the above is this: in the unlikely case that the rate on your negative am loan is very high, then you could to reduce your payments by refinancing. But the current rate for a 30-year mortgage is around 6.4%, so your rate would have to be quite a bit higher than that to justify refinancing now.
