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A reverse mortgage is a loan designed to help older homeowners access home equity while using their house as collateral. This can provide financial flexibility and security in retirement, but its important to understand the terms.

Who Is Eligible for a Reverse Mortgage?
Reverse mortgages are intended for people who own a house outright or who have a large amount of equity. A Home Equity Conversion Mortgage (HECM) is the most popular type of reverse mortgage. Its insured by the federal government and widely available through Federal Housing Administration (FHA)-approved lenders.

The youngest borrower for a reverse mortgage must be at least 62 years old. The U.S. Department of Housing and Urban Development sets financial eligibility criteria. The borrower must use the house as a primary residence, pay required property taxes and homeowners insurance premiums, and maintain the house according to FHA requirements.

How Much Money Can You Get and How Can It Be Used?
You might not be able to borrow an amount equal to your homes full value, even if its paid off. The amount of the loan depends on the age of the youngest borrower, the current interest rate, the houses appraised value and lending limits set by the government. You may receive money in a lump sum, equal monthly payments for a fixed time period, equal monthly payments as long as you live in the house, a line of credit, or a combination. Reverse mortgages have several fees that can make them expensive.

Seniors use funds from a reverse mortgage for a variety of purposes, including medical bills, home repairs and emergencies. If you have an outstanding mortgage balance, proceeds from the reverse mortgage must be used at closing to pay off the existing mortgage first.

Will You Have to Make Payments?
Youll never owe more than the house is worth, no matter what happens to property values, and you wont have to make monthly payments. A reverse mortgage generally doesnt have to be repaid until the last borrower dies or moves out, but the loan may come due if the borrower no longer uses the house as a primary residence, falls behind on property taxes or homeowners insurance, or doesnt properly maintain it.

If you die, your spouse may be able to continue living in the house, even if he or she wasnt a co-borrower, or the estate may repay the reverse mortgage or sell the house. Any home equity in excess of the loan balance will become the property of the estate. If the sale price isnt enough to pay off the reverse mortgage, the lender will take a loss.

Is a Reverse Mortgage Right for You?
A reverse mortgage can let you tap into your home equity and live comfortably in retirement, but it can be a risky financial move. Make sure that you understand the rules and fees and that you can afford to pay for property taxes, homeowners insurance and maintenance. Discuss the pros and cons of a reverse mortgage with a financial planner.

This article is intended for informational purposes only and should not be construed as professional advice.

Published with permission from RISMedia.

Kids today have a lot to distract them from doing their homework, like video games, Netflix, YouTube, texting and social media. And lets face it, a lot of adults are just as addicted to their phone as any teenager.

So, as you move into a new home, consider designating a device-free room, a place where kids can study, adults can work and read, and the family can gather to relax, talk or enjoy a hobby.

Heres how you can create a quiet and productive room for your family.

Start With a Desk:
Bring in a simple desk where kids can study and write papers. Although you want to keep this room free of devices, students will most likely need to bring a laptop into the room for research and writing.

 

Bring in the Books:
Set up a bookshelf and fill it up. Start with a dictionary, thesaurus and reference books. Then add some favorite novels and non-fiction titles about a variety of topics such as sports, history and entertainment. If you have young kids, be sure to include picture books to get them in the habit of reading.

 

Figure This Out:
This room is also a great place to set up a table with a puzzle. You can even buy tables that are designed for puzzles. Dont feel any pressure, make it something family members do, as a group and individually, on an ongoing basis.

 

Get a Comfy Chair:
This room needs a place where people can sit, and a nice welcoming chair is perfect for reading and practicing a hobby, such as Add a blanket to the room to make it an ideal spot for a nap.

 

Let There Be Music:
You can make an exception to the gadget rule by streaming music via a phone or tablet. You can even put your old CDs to use in this room or even just listen to a radio. Whatever you choose, the right music can set the mood for all sorts of activities.

Before you know it, your family will be spending a lot more time together”and a lot less time on their phones.

Published with permission from RISMedia.

Redoing your kitchen floor on your own is an ambitious undertaking that can be accomplished with the right supplies, tools and know-how. Whether you want to redo your floor by yourself to save money or simply for a sense of accomplishment, there are various ways to get the job done.

Here are several things that youll need in order to complete your DIY kitchen floor project:

Correct Floor Measurements
Your entire project could wind up in chaos if your floor measurements arent correct. The floor measurements will determine the sizes and shapes of the tiles youll need, along with where theyll be placed. If the shape of your floor is square or rectangular, you can calculate its square footage by measuring the floors length and width in feet and multiplying them together. For a floor with a more unusual shape, youll need to divide each section into rectangular units with string or other markers, and then add the square footage of each unit to get the correct total. You should also buy a bit more tile than what would cover your floors square footage, just in case some tiles break or you make mistakes.

The Right Tiles and Caulk
Next, choose the tiles thatll go best in your kitchen. Tiles are available in different shapes, sizes colors and materials, and making the right choice will depend on your specific requirements and personal taste. To set the tiles into place and hold them together, youll need caulk thats formulated to prevent cracks and loose pieces. Be sure to lay tiles down together before you add the caulk so you can ensure they’ll fit in the given space.

Proper Installation Equipment
Some of the tools youll need to complete your project include a notched trowel and a grout float made of rubber along with grout nippers. Masonry saws also work well when sawing tiles that dont fit exactly into a particular space. When using a tile nipper or masonry saw, its always advisable to wear safety glasses and a mask to filter out the particles in the air. Make sure stone or ceramic tiles are wet when cutting them in order to prevent sending dust everywhere that can get into your lungs and eyes. If youre uncomfortable cutting the tiles yourself, many hardware stores offer that service for you.

Cleanup Supplies
Youll likely have a big mess on your hands after youve completed your project, and youll want to have cleanup supplies handy. Sweeping with a broom or using a vacuum to clean up dirt, dust and other debris can eliminate a lot of the clutter. Having trash bags handy for removing spare pieces and supplies that arent needed will also be helpful. Going over your new tiles with a mop and coat of wax will make them look especially attractive. Also, disinfectant spray can be used for a more thorough sanitizing.

Going the DIY route to install a new kitchen floor can be both a challenging and rewarding experience. Getting everything thats needed to complete the project beforehand can save you a lot of time and additional hassle.

Source: Meghan Belnap/RISMedias Housecall

Published with permission from RISMedia.

The interest rate on your mortgage will have a major impact on the total amount youll pay over the life of the loan. If youre buying a home that you plan to live for a long time, reducing your interest rate by purchasing mortgage points could allow you to save tens of thousands of dollars.

How Do Mortgage Points Work?
Mortgage points, or discount points, are fees that you can pay to the lender at closing in exchange for a reduction in your interest rate. One point costs 1 percent of the mortgage amount. The amount that the interest rate is reduced depends on the lender. Each point typically reduces the interest rate by one-eighth to one-quarter of 1 percent.

Should You Buy Mortgage Points?
The longer you own your house and make monthly mortgage payments, the more of an impact points can have. To figure out if it makes sense to purchase points, you need to look at your specific situation and crunch the numbers.

Compare the amount your monthly payments would be if you didnt buy any points and paid the full interest rate to what youd pay if you bought points. Divide the amount youd spend on points by the amount youd save on interest each month to figure out after how many months the savings would equal the cost of points. If youd stay in your home after the break-even point, it would make sense to buy points. If youd likely move before then, youd be better off not buying points.

If you chose an adjustable-rate mortgage, points would generally only lower the interest rate during the fixed-rate period at the beginning. Figure out if youd break even before the interest rate changed and you lost the reduction from points.

Putting down 20 percent of the purchase price could allow you to avoid paying for private mortgage insurance (PMI). You might save more by making a large down payment and avoiding PMI than you would by purchasing mortgage points to lower the interest rate. Run the numbers to figure out what would be better for your specific circumstances.

Buying mortgage points might also lower your tax liability. Discuss your specific circumstances with an accountant.

Figure out If Points Are Right for You
If you plan to stay in your home long-term, lowering your interest rate could help you save a lot of money. If you dont plan to stay there long enough to break even, youd be better off not buying points. Making a larger down payment to avoid PMI would be the better option in some cases. The only way to decide which is the right move is to consider the cost of the house you want, how much points would lower your interest rate, and how long you expect to live in the house, then do the math.

This article is intended for informational purposes only and should not be construed as professional or legal advice.

Published with permission from RISMedia.

Everyone loves the pristine look of a white kitchen. From traditional elegance to contemporary cool, the monochromatic color scheme lends itself to a variety of styles in the cooking space. If youre thinking about designing a white kitchen in your new home, here are a few tips to help guide you in the right direction.

Go Big On Marble
Marble has long been, and will continue to be, one of the most luxurious materials you can bring into your home. In particular, Calacatta marble is a hallmark of the white kitchen thats perfect for creating sophisticated countertops and backsplashes. The deep veining pattern is a good way to provide a sense of depth so that your cooking area doesnt feel too stark.

Warm It Up With Wood
Whether its white oak floors or wood beamed ceilings, a little bit of wood can go a long way in a white kitchen. By adding natural material, you can easily warm up the ambience and make it feel like a more inviting space for the family to gather in. A careful balance between white and wood in the kitchen creates an effortlessly timeless aesthetic.

A Touch of Texture
When youre sticking to one color, a strong sense of texture becomes all the more important in your kitchen. There are plenty of different ways that you can add it, like terrazzo floors, exposed white brick walls or beadboard cabinets. Recently, concrete floors have become a trendy look in white kitchens, but keep in mind that theyll have to be sealed regularly to avoid staining.

Introduce Accents
If were being honest, a white kitchen doesnt have to be entirely white. In fact, introducing an accent color is advised to mix it up a little bit and give the eye something to rest on when one enters the room. This can be anything from barstools and pendant lights to colorful kitchenware that you keep on display with open shelving.

Maximize Natural Light
Natural light has a serious impact on the way a white kitchen feels. Sun exposure helps to create a light and airy atmosphere and without it you run the risk of the space feeling a bit cold. Likewise, focus on warm lighting to set the tone in the evenings after the sun goes down.

Published with permission from RISMedia.