First, what everyone else has said.
Second: track your expenses -- Mint, You Need a Budget, etc. You guys make a very good combined salary and so should have more assets/no debt. I understand this is a recent change for you, but part of making that change effective is paying very close attention to where you're actually spending money, and how much, and not just where/how much you think you are (e.g., I'm fairly confident your "misc" category isn't really $100/mo). Otherwise, you are likely to sell the house, pay off the debt, and run it back up, all the while wondering how the heck that happened.
Please do a full case study as you have time. You have a lot of moving parts here, and folks really need to see all of them together to help you prioritize.