Washington: Billionaire Facebook founder Mark Zuckerberg has refinanced his 5.95 million dollar California mansion at a staggeringly low interest rate of 1.05 percent.
According to public records for the property, Zuckerberg took out a 30-year adjustable-rate loan on his 5.95 million dollar 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, “the New York Daily News quoted Greg McBride, senior financial analyst with Bankrate Inc, as saying.
According to the report, while almost all lending rates are currently at record low in the US, last week interest rates on 30-year mortgages dipped to 3.56 percent.
"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 added.
Experts claim that for Zuckerberg, with a 14 billion dollar net worth, borrowing essentially for free might be another reason, as he would opt to take out a mortgage versus buying his home outright.
First Published: Tuesday, July 17, 2012, 18:01