Billionaire Facebook founder Mark Zuckerberg has refinanced his California mansion at a staggeringly low 1.05 percent interest rate - meaning he is borrowing money almost for free.
According to public records for the property, Zuckerberg took out a 30-year adjustable-rate loan on his $5.95 million home at just over one percent, a rate lower than inflation.
“When you can borrow at a rate below inflation, you’re borrowing for free, Greg McBride, senior financial analyst with Bankrate Inc, told Bloomberg.
Almost all lending rates are at record lows, and last week interest rates on 30-year mortgages dipped to 3.56 percent. Wealthy individuals can see even lower rates.
"While almost all lending rates have reached historical lows this year, the borrowing costs available to high-net-worth individuals are even lower if the person is willing to bear the risk of monthly interest rate adjustments, McBride told Bloomberg.
Borrowing essentially for free might be another reason Zuckerberg, with a $14 billion net worth, would opt to take out a mortgage versus buying his home outright, experts said.
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