Consider the Cost

For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it—lest after he has laid the foundation, and is not about to finish, all who see it begin to mock him, saying, ‘This man began to build and was not able to finish’. Luke 14 v 28

You have borrowed as much as the banks allowed and bought a lovely house with 'affordable' repayments to be repaid over the next 25 years. Have you fully considered the cost? What would happen if the interest rate on your loan increased during the next 25 years to 7%, 10% or even 20%? In the late 1980s when New Zealand interest rates soared to 18-20%, many New Zealanders discovered that the easily-managed mortgage they thought they had, was now crippling them. Giving dropped and missionaries had to return home as churches could no longer support them.

Many families  were forced to sell their homes in order to pay back their mortgages. The residential property market fell dramatically due to the number of forced sales. Some, who had purchased on low deposit, found that their house was worth less than their mortgage! Yet at the time they took out their mortgage they could easily make the repayments.What would happen to your church giving if interest rates dramatically increased while you held a bank mortgage? Would you still be able to afford your repayments? What would happen if you couldn’t? Can you trust your bank to sell your home at a fair price?

Even if you could afford the repayments and keep your house have you considered the what the house will cost you?  Interest on a $200,000 25-year mortgage at 7% would be $224,000 - which means you end up paying for the house twice!  If rates increased to 9.3% (the average while LT has operated) it would cost $316,000 in interest - so your 'modest' $200,000 home is likely to cost you over $500,000! 

In contrast the cost of contributing to Liberty Trust is known and fixed. There is no great gamble involved, the cost will not change due to world instability or rising interest rates for we do not borrow at interest to lend. Better still your contribution is building a storehouse which will keep on assisting many more until Christ returns.     

Part Two: Servant to the Lender