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Home Equity and the LDS Mission: Planning Before Your Child Leaves

When a Latter-day Saint family sends a child on a mission, the financial commitment is real and sustained: $500-$600 per month for 18-24 months, plus initial flights and training costs. For many families, this is $90,000-$130,000 total. And it coincides with a natural life inflection point that has real estate implications: one fewer person in the house, a significant recurring expense for 2 years, and a clear timeline for when that expense ends.

The Mission Cost Reality

The current Church mission support commitment: $500-$600 per month paid by the missionary’s family (or mission fund). Additional costs: Initial flights to the mission location (MTC in Provo, then to mission area): variable but often $500-$2,000+ depending on destination. Initial clothing and equipment: $1,000-$3,000. Visa and document costs for international missions. Total for a 2-year mission: $90,000-$130,000 is a reasonable estimate, though families in specific circumstances may pay more or less. For the family with significant home equity: this is a manageable expense. For the family with little equity and a tight budget: the mission call is a real financial planning moment.

Real Estate Options Before the Mission Departure

(1) Do nothing, fund from income: the family with sufficient income absorbs the mission cost from cash flow. No real estate action needed. (2) HELOC to fund the mission: a home equity line of credit provides flexible access to equity for mission costs. The HELOC draws down during the mission and is repaid over time after the missionary returns. Interest-only payments during the draw period minimize the cash flow impact. (3) Cash-out refinance: refinance the mortgage to extract equity as cash, which then funds the mission costs. Only works if the new rate and payment are manageable. In 2025-2026 rates, this is often not financially favorable for families with low-rate existing mortgages. (4) Sell and downsize: for the family with a child leaving and a home that is now too large, the pre-mission period is a natural time to downsize. Extract equity, move to a smaller property, reduce the housing payment, and fund the mission from the freed capital. (5) Buy larger before departure: counterintuitive but sometimes right: the family that knows the missionary will return and fill the house again uses the pre-mission equity to move up while the family is still intact and the timing is right.

The Timing Question: Before or After the Mission

(1) Buy larger before: pros: the family is together for the purchase decision, the equity is at its maximum before mission expenses begin, and the move is behind them before the emotional weight of departure. cons: you are buying a home for a family that is about to be smaller by one. (2) Downsize before: pros: reduced housing payment during the mission period frees cash for mission costs. cons: the missionary returns to a smaller home. (3) Wait until after: pros: you know what the family situation is post-mission. cons: the market may have moved. The family’s specific equity position, income, and housing needs determine the right answer. The specialist who serves LDS families has had this conversation enough times to know the framework.

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Frequently Asked Questions

How much does an LDS mission cost a family?

$500-$600 per month plus initial flights, training costs, and equipment. Total for a 2-year mission: approximately $90,000-$130,000. Families with sufficient home equity often fund this through a HELOC or cash-out refinance.

Should I use home equity to fund my child's mission?

A HELOC (home equity line of credit) is a common tool — flexible access with interest-only payments during the draw period. Cash-out refinance works if the new rate is manageable. The right tool depends on your existing mortgage rate, equity amount, and income during the mission period.

Is a mission departure a good time to sell and downsize?

For families with equity whose home is now too large (one fewer child), the pre-mission period is a natural downsize moment. The proceeds fund the mission, reduce housing costs, and position the family well. Works best when the missionary will not return to a specific bedroom that is needed.