Posted on 18 July, 2012 | No Comments
News from Reuters:
Perhaps more astonishing than Mark Zuckerberg refinancing a 1.05% home mortgage rate is the fact that the 40th richest man in the world needed a mortgage at all.
After all, why would someone worth over $ 15 billion need to borrow money to pay off a $ 7 million home?
Well, if you can borrow money at 1.05%, you’re basically borrowing money for free, reports Bloomberg.
So Zuckerberg would be dumb not to.
Zuckerberg bought his Palo Alto house last year and took out an adjustable-rate mortgage for $ 5.95 million, reports Bloomberg. An adjustable-rate mortgage (ARM) is a loan that’s interest rate can rise or fall given market conditions. ARMs are usually contrasted with a fixed-rate loan where the interest rate never fluctuates.
The benefits of an ARM……………. continues on Reuters