Episode Details

Christians often say that God owns everything and that what we possess has simply been entrusted to our care. We apply that principle to our income, savings, investments, and giving. But we may treat another significant asset differently: the equity in our homes.

Harlan Accola, who leads the reverse mortgage team at Movement Mortgage, joined the show today to discuss why homeowners—particularly those approaching or already in retirement—should consider home equity as part of their overall stewardship plan.

Home Equity Is Still Part of Your Wealth

For generations, many families have followed a familiar pattern: buy a home, pay off the mortgage, and eventually leave the house to their children.

That goal is certainly not wrong. But Harlan says tradition can sometimes cause us to mentally separate home equity from the rest of our financial resources.

“The home equity is wealth,” he explained.

That does not mean every homeowner should borrow against a home's value. Rather, it means home equity deserves to be considered alongside retirement accounts, savings, investments, and other assets when evaluating the resources God has entrusted to us.

That consideration has become increasingly important as home values have risen.

Harlan pointed to research from Harvard’s Joint Center for Housing Studies showing that many older Americans have accumulated substantial equity in their homes. In some cases, homeowners may have more wealth tied up in their houses than they have available in retirement accounts and other liquid assets.

That can create an unusual situation: someone may appear financially secure on paper while struggling to generate enough monthly cash flow for ordinary expenses.

Should the House Always Be Left to the Children?

Another common assumption is that parents should leave the family home to their children free and clear.

Again, that can be a worthy goal. But Harlan encourages families to consider it within the broader purpose of stewardship.

Scripture places tremendous emphasis on the spiritual legacy we leave behind—our faithfulness, wisdom, example, teaching, and love for God and others. Financial resources may certainly be part of an inheritance, but they are not the only inheritance that matters.

That raises several important questions:

• Could some of the wealth stored in a home help meet legitimate retirement needs? 
• Could it help provide for a surviving spouse? 
• Could it reduce unnecessary financial pressure? 
• Could it create opportunities for generosity while someone is still alive?

Those questions do not automatically lead to the same answer for every family. The point is to prayerfully evaluate the home as part of the entire financial picture rather than assuming it must remain untouched simply because that has traditionally been the plan.

In many families, adult children may also care far more about their parents having financial stability and appropriate care later in life than about preserving every dollar of home equity for an eventual inheritance.

House Rich, but Cash-Flow Poor

Owning substantial home equity does not necessarily mean retirement expenses are easy to manage. Harlan says he regularly encounters older homeowners with significant equity who nevertheless struggle to cover monthly expenses or unexpected repairs.

He also noted that many older homeowners still carry mortgages well into retirement. When housing costs consume a large portion of a household’s income, even someone with considerable home equity can experience financial strain.

That distinction matters. A home may represent considerable net w