The Washington Post: You can borrow for retirement. It’s called a reverse mortgage.

The Washington Post, February 24, 2020: You can borrow for retirement. It’s called a reverse mortgage.

When parents are concerned they can’t save for their child’s college education and for retirement, experts will often tell them to think of their needs first.

The usual advice to parents is this: “Your children can borrow for college. You can’t borrow for retirement.”

But is this true?

“Don’t reverse mortgages count as retirement loans?” one reader recently asked.

There is a financial product that does allow seniors to borrow for retirement. If seniors have substantial equity in their homes, they can take out what is called a reverse mortgage.

There are pros to a reverse mortgage, but the complexity of the product means you shouldn’t overlook the cons.

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