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

[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