Current home discharged in CH 7

I had a chapter 7 bk discharged in October of 2009, included my mortgages. I did not reaffirm. I stayed in the home and have continued to make the payments every month because we intended to stay in the home. However, the home is now about 80k underwater. I am still trying to rebuild so watching costs is always on my mind. I would like to purchase a home in my area with fewer repairs needed and also pay about 400-500 less than what I am paying now for a mortgage payment. Given my credit score, dti, and ability to pay some down, etc.. I think I could get a 30 year mortgage around 4.6 based on my research. However, what I am unsure on is how my current home comes into play with lenders. Need your opinion please.