Mark Zuckerberg Refinanced Mortgage With 1-Percent Interest Loan

Bloomberg:

Billionaire Mark Zuckerberg is giving new meaning to the term "the one percent."

The Facebook Inc. (FB) founder refinanced a $5.95 million mortgage on his Palo Alto, California, home with a 30-year adjustable-rate loan starting at 1.05 percent, according to public records for the property.

Read the whole story at Bloomberg

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Comments

[SmoothDaddyG]

01:14 AM on 07/17/2012

That .95 trick works every time.

[mr whiteffolks]

07:52 PM on 07/16/2012

Wow ! I wonder if Zuck had to "like" the lender on their facebook page in order to get that rate !

[Larz99]

07:24 PM on 07/16/2012

Regardless of the interest rate (although that is quite low)...Why didn't he just pay cash and not pay any interest at all? I mean $5,950,000 is nothing to this guy. He makes more than that in his sleep.

[mr whiteffolks]

07:54 PM on 07/16/2012

I was thinking the same thing but a 1% loan on $5M is utterly unbelievable ! I guess some other customers will pay more so that he gets his 1% interest ! American business ! Gotta love it !

[KFMac001]

04:29 AM on 07/17/2012

He was probably given that financial advice. Basically, even for people who can afford to pay off a property in one fell swoop, it is financially more savvy to carry a mortgage. If you pay off in one fell swoop, that earning potential of the money is gone. On the other hand, you can take the money that you otherwise would have used to pay the mortgage, and invest it (i.e. make money off your money). You've made more money than you would have, if you would have paid everything upfront (especially with such a low interest rate).

[Larz99]

02:58 PM on 07/17/2012

That makes sense. Thanks

[laceystern]

05:49 PM on 07/16/2012

Because he is a known leftist, absolutely nothing he does comes under scrutiny. Somehow, his wealth is ok because he touts liberal rhetoric....pathetic. Why is not one of the "occupy" wingnuts protesting outside his house?

[Jesse Wilson]

12:39 AM on 07/17/2012

lol guy. "why don't they mock and taunt the compassionate people who care about things besides protecting their own wealth?! meanies."

[FreddieVee]

05:01 PM on 07/16/2012

I hope Zuck will be able to make his monthly payments when the adjustable rate changes.

FreddieVee

[Burkelbile]

04:39 PM on 07/16/2012

If I had his money I would have just paid cash with whatever I did not have tied up in investments
but then, I'm not him.

Pass the bologna and the miracle whip, please.

[Mary Henry]

01:22 PM on 07/16/2012

The rich 5% will never let you be president in the first place,Bologna man

[bolognan]

12:58 PM on 07/16/2012

when i become president there will be salary caps on all americans. maybe the rich 5% or so wont vote for me but the rest will.

[petekev65]

03:16 PM on 07/16/2012

Why do you think American's want salary caps?

[CSNC]

04:54 PM on 07/16/2012

bolognan,

We do not need salary caps -- we need to tax anyone making more than 1 million dollars at 90% rate with no loopholes -- except when that money is re-invested in business and create jobs here in America.

H

[Ian McCullough]

12:28 PM on 07/16/2012

Couldn't he just get a huge loan at that rate and then loan it out to others at a higher rate and basically just be a bank?

[Jason Wolfe]

10:29 AM on 07/16/2012

Why not just buy the house without a bank?

[sandyporter45]

10:31 AM on 07/16/2012

He could easily do that but probably has the money tied up in investments with a higher ROI...not that he needs it, lol.

[Antarr Byrd]

01:20 PM on 07/16/2012

The current rate of inflation is about 2.3% so he's essentially paying nothing extra.

[laceystern]

05:59 PM on 07/16/2012

Also.... he is using someone elses' money at 1%, keeping more of his own to invest at 2-3%....so he comes out ahead.