Not true. The homeowner doesn’t make payments. It is a loan against the value of your home and your equity is gradually eroded. The idea is the loan is paid off when you sell or die. Companies don’t let you borrow anywhere near the total market value of your home. It is still your asset.
If you bought a bungalow on the Jersey Shore or in Pasadena California in the 50’s, that home is now worth millions. If you could use some cash or just want to have some fun, then a RM makes sense......in a broader financial structure. Maybe you don’t have kids or don’t want them to inherit the asset.
RM’s make a lot of sense for those folks who are real estate rich......
Every financial guy I spoke to was against it.
As for Selleck. Pete Wilson should have appointed him to the senate in 1991. Instead we ended up with Boxer and Feinstein.