Zuckerberg’s Mortgage Loan Gives New Meaning to the 1%

[Lint Head]

http://www.bloomberg.com/news/2012-07-16/zuckerberg-s-loan-gives-new-meaning-to-the-1-mortgages.html
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.

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, said Greg McBride, senior financial analyst with Bankrate Inc., a North Palm Beach, Florida-based firm that tracks interest rates. Large increases are unlikely anytime soon with the Federal Reserve signaling it will keep interest rates near zero for at least two years.

****
Financial advantages that billionaires have over the rest of us is unfair. Using a a 1% interest loan one can borrow at 1% then invest the loan and make money even at +2% or more. Why would a millionaire even need a loan. Banks borrow at this rate.

I think the percentages should be reversed. Why should a non billionaire who needs a loan have to pay 4% to 32%? A wealthy person can more afford to pay a higher rate than someone with less money. No wonder people are upside down with loans.

[hedgehog]

1. Why would Zuckerburg need a mortgage at all -

the tax write-off must be peanuts!

[Auggie]

9. One explanation:

Wealthy individuals often choose to finance a home purchase rather than pay cash because of the overall low cost of mortgage debt and the additional access to liquidity, Rob Kricena, a regional managing director at Wells Fargo Private Bank, said. In many cases, they invest excess cash that they would have used to purchase the home into higher-yielding assets, he said.

"Even if someone would be able to pay off that mortgage with cash or other assets, they don't want to tie up their holdings in real estate because they may have access to other types of more attractive investments," he said.

LINK: http://www.sfgate.com/business/article/Mark-Zuckerberg-s-mortgage-rate-1-05-3711118.php

[blah blah]

3. for those that don't get my point...

for those that don't get my point, I guess when your part of the 1% the president will see to it that you get more then your fair share. Question is does he actually have to pay it back? For those of you not aware how corrupt people and businesses work this is very close to a money laundering scheme. If you need a refresher on one type of money laundering method watch lethal weapon 2 I believe, it's the one about the diplomatic immunity.

[DURHAM D]

5. This makes less sense than your prior post.

[Sedona]

6. Troll, meet door,

nt

[spanone]

8. and how is the President involved in this? lethal weapon 2? why don't you just enlighten us.

[uncle ray]

11. Lethan Weapon 2?

can i borrow your VHS copy?

[DURHAM D]

4. What are you talking about?

[cbdo2007]

7. of course.....that's how loans work. The less risk they have to take, they more they're willing

to work with you to give you a good deal.

[Romulox]

10. Zuck has terrible taste. That's some small consolation for we plebians. nt