Feeling pretty good about snagging a refi rate in the 3s, aren’t you?
Think you got a deal, don’t you?
Then listen to this, from Bloomberg: Mark Zuckerberg (you know, the guy in that movie who founded something called Facebook … worth a few mill, er, billion) just landed a 30-year adjustable rate mortgage at the rate of … 1.05 percent.
Now this begs a question or two. The first of which may be why a guy with such a stash of cash doesn’t just pull out his wallet and start peeling off hundreds, or whatever, and pay the thing off right then and there.
All right, so his manse in Palo Alto, Calif. cost $ 5.95 million … still, the guy’s worth nearly $ 16 billion.
The reason is basic economics. Getting to borrow that much at that low a rate _ sub-inflation _ is like getting the money for free. And the Big Z can get it because he’s a high net worther who is willing to pay a higher rate if the ARM spikes upward. Lots of folks wouldn’t want to take such a chance
Full News here – The Biz Beat