Should a Christian mortgage a home?

Answer

A mortgage is a legal agreement in which a person borrows money to buy property (such as a house) and pays back the money with interest. Most homes in America are obtained through mortgages because the purchase price of most livable houses is far beyond the financial means of most home buyers. Therefore, individuals who wish to own a home instead of renting are confronted with a choice: buy a modest dwelling with available funds or opt for a mortgage to acquire a more comfortable house within their means. However, taking out a mortgage entails the home buyer being indebted to the loan company for around thirty years, typically, while paying interest and taxes on a property that depreciates. Is this a wise stewardship of the money God has entrusted to us? Is it morally acceptable for a Christian to purchase a house through a mortgage?

God entrusts His people with resources so they can lend to those in need and give generously (Psalm 15:5;Psalm 37:21;Matthew 5:42). When we are faithful with these resources, He often blesses us with more “He who is faithful in what is least is faithful also in much, and he who is unjust in what is least is unjust also in much.”, (Luke 16:10). However, when all our resources are tied up in interest payments and debt servicing, we have little remaining to invest in God’s kingdom.

Romans 13:7–8 provides further insight into God’s ideal: “Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor. Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law” (emphasis added). The King James Version phrases it as: “Owe no man anything, but to love one another.” As faithful stewards of all God has bestowed upon us, we should aspire to

Ensure that our financial decisions guide us toward achieving a debt-free lifestyle as much as possible.

Certain individuals perceive themselves as debt-free when their sole outstanding debt is their house payment. They opt to pay for pre-owned vehicles in cash and clear their credit card balances monthly to avoid any fees or interest charges. By purchasing a house with a mortgage well within their financial capabilities, they demonstrate responsible stewardship. Since they would be paying rent regardless, the house payment actually represents a more prudent investment. They possess the house rather than being possessed by it.

Nevertheless, many individuals fail to conduct thorough financial research before consulting a real estate agent and end up being convinced to take out a mortgage for a property exceeding their comfortable affordability. Merely meeting the criteria for a specific loan amount does not imply that one should commit to such high monthly payments. Discerning homebuyers carefully evaluate all available choices. They contemplate whether a smaller, more affordable home would serve their needs just as effectively. Moreover, they meticulously plan their payments based on a single paycheck, allowing for unforeseen emergencies.

A common mistake people make when securing a mortgage is assuming that their lifestyle and income will remain unchanged from the day of closing. James 4:14–15 states, “Why, you do not even know what will happen tomorrow. What is your life? You are a mist that appears for a little while and then vanishes. Instead, you ought to say, ‘If it is the Lord’s will, we will live and do this or that.’” It is risky to commit to debt payments contingent on the permanence of our jobs and financial circumstances. Illnesses, job losses, unexpected events like childbirth, and other factors can all impact income levels, generate significant stress, and potentially result in foreclosure.

If an individual decides to mortgage a fully owned home, the rationale behind such a decision should be unavoidable. Some individuals spend years repaying their homes, but once they are debt-free, they may choose to leverage their home equity for valid reasons.t-free, they leap right back into debtor status by remortgaging that home and using the cash for something that is transient or depreciates. If a financial crisis such as a medical emergency requires a significant financial outlay, then mortgaging the home may be the only option. However, depending on the laws in that area, a family could be setting themselves up to be homeless when they cannot repay the second mortgage.

There are many factors, both financial and spiritual, to consider before mortgaging a home. It is unwise to rush into a mortgage because we are unwilling to wait upon the Lord’s timing in providing the home He wants for us (Psalm 145:14-19). It’s tempting to want what our friends have and bite off more than we can chew “Ye ask, and receive not, because ye ask amiss, that ye may consume it upon your lusts.” , (James 4:3). Or to pursue our dreams in our ways rather than trust the Lord to provide in His way “Delight thyself also in the LORD; And he shall give thee the desires of thine heart.” , (Psalm 37:4). In those cases, it would be wrong to mortgage a home and place indebtedness over our finances for the next thirty years. God may have other plans for our lives that indebtedness would prevent. However, if the Lord has provided an excellent opportunity that is well within our means, and it will not impede our ability to weather life changes or give faithfully to His work, then a mortgage may be the best way to provide stability for our families.