We would worry less about going underwater and more about the drained savings. Negative equity only becomes a real problem if you are forced to sell. With 10% down, even a meaningful price dip roughly brings you back to breakeven rather than deep underwater, and a paper decline costs you nothing while you stay put and make the payment. Home values have historically recovered over the long run, though nobody can promise the timing. The exposure you have actually taken on is liquidity. Empty reserves mean no cushion for a job change, a major repair, or a rough month, and a missing cushion is what forces sales at the worst possible moment. Two priorities from here: 1. Rebuild your emergency reserves as the first order of business, ahead of extra principal payments or upgrades. 2. Protect your ability to hold. Equity is only truly lost if you sell into a low, so arrange your finances so you never have to be a forced seller. If you are comfortable with the payment and plan to stay for years, a temporary dip in value is a number on paper and nothing more.