Pre-payment penalty questions

I don't know if you can help me. I live in Dothan, AL and I purchased a home with Chevy Chase Home Mortgage Co. I went through a broker for a loan called a (MTA), and I guess it wasn't fully explained to me and my wife. I also was told there was no pre pay in Alabama. To make a long story short I have never been late on any of my pmts, but the balance just keeps growing, and growing. I tried to refi but come to find out there is a $18k pre payment penalty. Also this type loan is a varible rate where your rate changes every month as so does your pmt. These are the worst loans on the earth, and I don't recommend these loans for anyone. IF THERE IS ANYWAY YOU COULD HELP WITH MY LOAN BEFORE MY BALANCE GROWS MORE THAN THE HOME IS WORTH IT WOULD BE GREATLY APPRECIATED. IF THE BALANCE REACHES A 110% LOAN TO VALUE TO MY UNDERSTANDING THE MORTGAGE COMPANY WILL FORECLOSE ON MY HOME. I HAVE NEVER BEEN LATE ON A PMT, AND I SURE DO NOT WANT TO LOSE MY HOME.

THANKS FOR ANY DIRECTION HERE,