Answer: Eliminating such a small loan is unlikely to have a big effect on the size of the mortgage you’ll get, so you’re probably better off boosting your savings for your down payment. Don’t forget to save a bit extra so you have enough cash to cover closing costs and the inevitable repairs and maintenance required with homeownership.

Answer: It’s true that many people are forced to retire earlier than planned, but that in itself isn’t a reason to prioritize paying down a low-rate, potentially tax-deductible mortgage over saving more for retirement.

The two people in question were 50 and planning to retire in 10 years when they turned 60. They had no credit card debt or other loans except for a 15-year mortgage at 4.5%. If they’re in the 25% federal tax bracket and itemize their deductions, that would be an effective rate of just 3.4%. In any case, it’s a pretty cheap loan and one that would be paid off within a few years of their retirement. They almost certainly would be far better off taking advantage of opportunities to put more money into 401(k) accounts and Roth IRAs.

Focusing on paying down a mortgage may seem like the smart choice because it saves on interest, but it can leave people poorer in the long run if they’re ignoring opportunities to get retirement account matches, tax breaks and better returns on their money.

Since everyone’s situation is different, though, they’d be smart to find a fee-only financial planner to offer personalized advice.

Answer: Every state has rules that determine who gets what if someone dies intestate — without a will or trust. The court process where this is sorted out is called probate, and the surviving spouse is typically the executor or person responsible for settling debts and distributing assets. Mortgages and car loans stay with the property that secures them, which means whoever inherits the asset inherits the debt, according to attorney Mary Randolph, author of “The Executor’s Guide.”

If your dad’s estate was small — less than $500,000 — you or your mother may be able to handle the probate process with the help of an accountant. If his estate was larger or you feel you need more help, contact a probate attorney, who can help you get the process started and advise you about your state’s laws. And yes, your mom will need to notify creditors as well as any sources of income your dad may have had, such as employers, Social Security or a pension.

Answer: That must have been one massive mortgage you were carrying. You may feel positively giddy once those payments are gone, but don’t let it go to your head.

It would be easy to ratchet up your spending now that there’s so much extra money in the bank, but resist the urge. Concentrate first on wiping out your credit card debt, then focus on building up your emergency savings. The discipline of paying off debt and building savings will help you learn to live within your means—something you obviously weren’t doing when you took on that home loan and built up credit card debt.

You also should be saving aggressively for retirement, if you aren’t already. Take advantage of any workplace retirement plans, contributing at least enough to get the full company match, and consider funding Roth IRAs for both of you. Roth contributions aren’t tax deductible but the money is tax-free in retirement, and you can contribute up to $5,000 each as long as your modified adjusted gross income as a married couple filing jointly is under $167,000.

You can learn more about the basics by reading Eric Tyson’s excellent primer, “Personal Finance for Dummies.”

If he loses his job he will not have the income to keep his house, where he is upside-down. He owes $300,000 and the house is valued at $190,000.

He just paid the February payment and is now unsure what to do next. He doesn’t want to lose his house but he is currently living paycheck to paycheck and certainly can’t afford the payments without a job.

Should he stop making payments and let it go into foreclosure, which will ruin his good credit rating that he has worked so hard to maintain? Will the bank work with him to modify his mortgage before he loses his job? Could I buy the home in a short sale to keep the home in the family?

Answer: To answer your last question first, probably not. To get a short sale approved, lenders typically want an “arm’s length” transaction to avoid the possibility of fraud.

Your son should talk to a housing counselor approved by the U.S. Department of Housing and Urban Development. He can find referrals at www.hud.gov. The counselor can review his situation, discuss his options and help him navigate the loan modification process, if that’s the route he chooses.

If his unemployment is indeed temporary, he may only need mortgage forbearance (a temporary suspension of payments) or a short-term modification to keep his home. Either could negatively affect his credit, but the consequences would be less severe than the damage done by foreclosure.

Even a single skipped payment can knock 100 points off his credit scores, so he should avoid missing payments until he’s decided on a course of action.

I recently opened checking and savings accounts in my name only and had my paycheck deposited there instead of our joint account.

What steps should I take before a divorce decree to be sure I retain a great credit score?

Answer: To protect their credit, divorcing couples should make sure to close all joint credit accounts and transfer any balances to the partner who will be responsible for paying the obligation.

The same is true for mortgages and other loans that are in both names. Whenever possible, these debts should be refinanced in the responsible party’s name only.

All this should be done before the divorce is final. Otherwise, your ex can trash your credit — deliberately or not.

If your name is still on the mortgage, car loans or credit cards, your scores could plummet if she misses a payment. You would have little recourse because your creditors aren’t bound by your divorce agreement, even if it plainly requires her to stay up to date on these obligations.

Closing accounts and opening new ones can inflict temporary dings on your credit, but these pale in comparison to the damage done by a single skipped payment. If you want to keep that amicable vibe and your excellent scores, separate your credit accounts now.

It feels odd to sign up for a 30-year loan at age 54, but my primary reason to refinance would be to protect myself in case of the unexpected, such as a job loss. I have no other debt and my credit is excellent.

Answer: The benefits of refinancing wane the longer you’ve been paying down your loan. You’re far enough into your mortgage that refinancing to another 30-year loan will increase the total interest you pay over the life of the loans, even if your interest rate drops substantially.

If your mortgage was originally $200,000, for example, you could pay more than $60,000 in additional interest by refinancing the balance at the midway point, as you’re considering.

There are situations where reducing a monthly payment is so important that it’s worth the extra cost. If you couldn’t afford the current payments or were far behind in saving for retirement, you could make a case for refinancing.
Another option would be to refinance to get lower payments, but make extra principal payments when you can to pay the loan off quicker and reduce total interest costs.

But you’ll want to do the math for your particular situation before proceeding. The mortgage calculators at HSH Associates Financial Publishers, at www.hsh.com, can help.