Many retirees spend decades building equity in their homes. But could that equity become a wise tool for stewardship in the next season of life?

For many people, the words reverse mortgage raise immediate concerns. Some of those concerns come from outdated information, past abuses, or even a sense of guilt about taking on debt later in life. But is it possible that some retirees have dismissed this option too quickly?

Harlan Accola, who leads the reverse mortgage team at Movement Mortgage, joined the show today to help separate myth from reality and explain how today’s reverse mortgages may fit into a broader financial plan for some homeowners.

Reverse mortgages have carried a strong stigma for years, and according to Accola, some of that reputation was deserved.

In the past, there were bad products, bad actors, weak regulation, and not enough consumer protections. Those stories have been passed down through families, churches, and communities, shaping the way many people think about reverse mortgages today.

But Accola says today’s reverse mortgages are very different, especially when handled by qualified professionals and governed by stronger safeguards.

Much of the fear surrounding reverse mortgages is based on outdated information. Many people assume that taking out a reverse mortgage means losing ownership of their home. But that is not how the product works.

A reverse mortgage is simply a lien on the property. The homeowner does not lose ownership of the home, and monthly payments are not required. Instead, the loan is repaid later, usually when the borrower sells the home, moves out, or passes away.

That distinction matters because many retirees may be making decisions based on fear rather than accurate information.

Another common concern is that reverse mortgages are simply “bad debt.” But Accola points out that not all debt functions the same way.

Most people would not have been able to build wealth through homeownership if they had waited until they could pay for their first house in cash. A traditional mortgage often allows families to purchase a home, build equity, and create long-term stability.

Of course, some debt can be dangerous. Credit card debt, high-interest loans, and unnecessary consumer debt can quickly become burdensome. Proverbs 22:7 reminds us, “The rich rules over the poor, and the borrower is the slave of the lender.” That warning should lead us to approach debt with humility and caution.

But a reverse mortgage is different from many other forms of debt because it does not require mandatory monthly payments. That feature may provide flexibility for retirees who are trying to manage cash flow, reduce pressure on investment accounts, or remain in their homes without selling.

This does not mean a reverse mortgage is right for everyone. It simply means the question should not be answered by fear or assumptions alone. The better question is whether this tool serves wise stewardship in a specific family’s situation.

For many believers, the hesitation is not only financial—it is spiritual.

Some Christians have heard the message that being debt-free automatically makes someone more faithful or responsible. While there is great wisdom in eliminating unnecessary debt, that does not mean every form of debt is morally the same.

Accola notes that many retirees still carry mortgage debt into retirement. In fact, many homeowners reach retirement age without having paid off their homes entirely. Others may own their homes but need additional income flexibility.

In those situations, shame can become a barrier to wisdom. A retiree may think, “I should have done better,” or “I must not be faithful if I still have a mortgage.”

But Scripture does not call us to make financial decisions out of guilt. It calls us to wisdom, prayer, counsel, and trust in God. Stewardship is not about maintaining the appearance of financial success. It is about faithfully managing what God has entrusted to us in this season.

For some families, using home equity may be a prudent option. For others, it may not be. But either way, the decision should be made with clarity, not shame.

A reverse mortgage should never be treated as a magic solution. It is a financial tool, and like any tool, it can be used wisely or unwisely.

For some retirees, it may create breathing room in the budget. It may help them stay in their home. It may reduce the need to sell investments during a market downturn. It may also allow them to preserve other assets for longer.

But there are also important considerations. Borrowers need to understand the costs, long-term implications, effect on heirs, and responsibilities that remain with the homeowner, such as taxes, insurance, and maintenance.

That is why wise counsel is essential. Proverbs 15:22 says, “Without counsel plans fail, but with many advisers they succeed.” A reverse mortgage decision should involve qualified professionals, trusted family members, and careful prayer.

It should also be considered as part of a broader retirement plan, not in isolation.

Accola’s encouragement to listeners was simple: do not make financial decisions based on fear, rumors, or guilt.

Instead, get accurate information. Talk with people you trust. Seek guidance from professionals who understand how reverse mortgages work today. And when appropriate, involve your family so they understand your thinking and your goals.

A reverse mortgage is not right for everyone. But for some retirees, it may be a helpful part of a broader stewardship strategy. The key is understanding your options.

Faithful stewardship does not mean refusing to consider every financial tool. It means asking wise questions, seeking trustworthy counsel, and making decisions that help you manage God’s resources with humility and care.

For homeowners in retirement, that may include taking a fresh look at home equity—not as a source of security, but as one possible tool to support faithful living in the next season.

If you’d like to learn more about whether a reverse mortgage could be a wise option for your situation, visit FaithFi.com/Movement. Movement Mortgage serves families in all 50 states and can help you understand how today’s reverse mortgages work, what safeguards are in place, and whether this tool may fit into your broader financial plan.

That’s FaithFi.com/Movement.

Remember, you can call in to ask your questions every workday at (800) 525-7000. Faith & Finance is also available on Moody Radio Network and American Family Radio. You can also visit FaithFi.com to connect with our online community and partner with us as we help more people live as faithful stewards of God’s resources.

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