So what kinds of options do homeowners have?  Should they wait it out – continue to pay down the mortgage, maybe with accelerated payments?  Should they bail out now and downsize?  What about refinancing?  Of course, the answers are not the same for each individual.  Factors such as age, financial situation, desires, retirement future and other characteristics of the individual and their family come into play when making these decisions.  If an individual has sufficient assets for retirement, there is probably no reason to bail out and downsize.  However, if an individual has insufficient assets for retirement, it may be a good idea to sell your home and minimize payments.  Keep in mind that every individual has a different financial situation, and for that reason not every option is optimal for everyone.