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Published with permission from RISMedia.

For seniors who want to continue to live in their homes during retirement, a reverse mortgage can be an attractive option. It allows seniors to access the equity theyve built up by paying their mortgages over the years and use that money to cover living expenses.

Sometimes seniors who have taken out a reverse mortgage decide to move to be closer to their children and grandchildren. Others may need to move into a nursing home to receive full-time care. In those circumstances, a house with a reverse mortgage can be sold.

When Does It Make Sense to Sell a House With a Reverse Mortgage?
Selling your home could be a wise move if its current market value is high enough that youd be able to pay off the loan balance and still have some money left over. If the amount of the monthly payments youve received, plus interest and fees, have gone up as the real estate market has suffered and your house has lost value, selling might not be profitable.

Reverse mortgages are generally non-recourse loans. That means you and your heirs will never be responsible for paying any money to the lender above the appraised value of the house. If you sell your home, the reverse mortgage lender will accept the lesser of 95 percent of the houses appraised value or the payoff amount to close out the account.

How to Sell Your House
Before you put your home on the market, contact your lender to find out your payoff amount. That should include any money you have received, plus interest and fees. Ask the lender to provide you with the payoff amount in writing.

The next step is to list your home. Selling a house with a reverse mortgage is similar in many ways to selling a home with a standard mortgage. A real estate agent can answer your questions and guide you through the process.

What Happens When a House With a Reverse Mortgage Is Sold
When your house is sold, the money from the sale will be used first to pay off the balance owed on the mortgage, along with any liens or fees. The rest of the money will be yours to use as you see fit. You wont incur any financial penalty by selling your house after taking out a reverse mortgage.

Should You Sell Your Home?
If you took out a reverse mortgage years ago but your circumstances have changed and you now find yourself needing or wanting to move, you may be able to sell your home and possibly walk away with a significant amount of cash to use for other expenses. Discuss your situation with your lender and a real estate agent.

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

Published with permission from RISMedia.

Should you prioritize paying off debt or saving for retirement?

If youre younger and have high-interest debt, tackle that first and pay beyond the minimum monthly rate.

Youll be able to stop wasting money on interest and then focus on long-term goals.

If you have low-interest debt but little retirement money, contribute to a 401(k) or IRA first, especially if youre older.

If you have debt with moderate interest rates, some retirement funds and decades left to save, strike a balance.

Consider your circumstances, and figure out what makes sense for you.

When it comes to financial priorities, the answer isnt one-size-fits-all.

Published with permission from RISMedia.

Mortgage lenders typically want borrowers to put down 20 percent of the purchase price toward a home. For borrowers who do not have a lot of money for a down payment, it can be difficult to qualify for a mortgage. Some lenders approve mortgages with less money down, but those borrowers are considered a higher risk than those who put down 20 percent. Lenders often require borrowers with lower down payments to obtain private mortgage insurance (PMI). This is insurance provided by a private company that is designed to protect the lender if the borrower is unable to make the monthly mortgage payments.

When Is Private Mortgage Insurance Required?
If you obtain a mortgage through a conventional loan and put down less than 20 percent, the lender will likely require you to purchase PMI. It may also be required if you refinance your mortgage and you have less than 20 percent equity.

In some circumstances, you may be able to obtain a conventional loan with a low down payment that doesn’t require PMI. In that case, you will probably have to pay a higher interest rate. That option may or may not be more expensive than purchasing PMI. Talk to your lender about your specific circumstances and how much each scenario would cost. Also talk to a tax advisor about how paying for private mortgage insurance would affect your taxes and whether you might be better off accepting a higher interest rate to avoid paying for PMI.

If you do not have enough money for a 20 percent down payment, you may be able to qualify for an alternative type of loan, such as one through the Federal Housing Administration (FHA). Talk to your lender to find out how your down payment, credit score and other factors would affect your payments and whether that would be cheaper than obtaining a loan with PMI.

How Is PMI Paid?
Depending on the lender, you may have one or more options to pay for PMI. Some lenders charge monthly premiums that are added onto the cost of the mortgage. Others require a one-time premium paid at the time of closing, and some require both an upfront fee and monthly payments. Some lenders allow borrowers to choose the option that works best for them, while others offer only one method of payment.

Carefully Weigh Your Options
If you do not have enough money for a 20 percent down payment, you may still be able to obtain a mortgage, but you could have to pay extra for private mortgage insurance. Consider various options and talk to your lender about how much a variety of scenarios would cost you, both monthly and over the course of several years, to decide which type of loan and down payment amount are best for you.

Published with permission from RISMedia.

A damaged roof could deter buyers, causing your house to stay on the market for longer than youd like.

What Is the Roofs Current Condition?

If the roof appears damaged, have it inspected by a professional.

Knowing the cost of repairs can help you decide what to do.

Should You Replace the Roof or Sell the House As-Is?

If your house needs major work, buyers will be reluctant to make an offer.

If your roof has damage, it should be replaced before you sell the house.

If you cant afford to replace the roof, you might be able to sell your house, but be ready to accept an offer that’s lower than you would like.

Published with permission from RISMedia.