your net worth is likely still quite positive, unless your mortgage(s) is somehow much greater than the value of your house, but the mix has changed. you now ha

your net worth is likely still quite positive, unless your mortgage(s) is somehow much greater than the value of your house, but the mix has changed. you now have a positive asset that's mostly offset by a (negative) mortgage (and some cash). that doesn't change your (point-in-time) net worth. over time, some of your income will be diverted to reducing the mortgage so that your net worth grows (rather than being spent). this is why houses are seen as piggy banks--they act like forced savings because the asset has relatively stable value (and can even appreciate).