Super-rich Americans like Mark Zuckerberg and Jay-Z have taken out mortgages for homes — here’s why

For many people, the only way to afford a home is to finance it with a mortgage and pay off that loan over time.

During the first quarter of 2025, the median U.S. home sale price was $503,800, according to Federal Reserve Economic Data. Given that median annual wages were just $61,984 during the last quarter of 2024, it’s easy to see why the typical working American can barely afford a down payment on a home today, let alone the entire cost in one fell swoop.

But uber-wealthy folks are in a different position. Those with billions of dollars to their name can buy a home outright rather than take out a loan.

Yet celebrities like Mark Zuckerberg, Elon Musk and Jay-Z have all made headlines for taking out multimillion-dollar mortgages — not out of necessity but to reap a couple of key benefits.

It allows for better cash flow

Someone with billions to their name might not worry about cash flow, but taking out a mortgage can be a strategic move to maintain liquidity and keep cash available for other investments, rather than tying it up in a relatively illiquid asset like real estate.

Take Hollywood power couple Jay-Z and Beyoncé, for example. Despite their estimated combined net worth of $1.6 billion in 2017, they secured a $52.8 million mortgage to purchase an $88 million hillside estate in Los Angeles, according to the L.A. Times.

There could be major benefits for Beyoncé and Jay-Z, depending on how their portfolio is allocated,” Robert Cohan, managing director at Carlyle Financial, told Business Insider. “A mortgage gives them financial flexibility, and they have the ability to pay it off whenever they choose.

You can still land an affordable mortgage rate even if you don’t fall in the category of America’s elite 1%. The key is to not accept the first offer on the table — and to shop around and get quotes from at least two-three lenders.

According to a study conducted by LendingTree, 45% of homebuyers who received more than one quote got a lower rate than their initial one .

Free up more money to invest

If you purchased a house in the last couple of years at a fixed rate, chances are you might be able to refinance it at a lower rate right now. Mark Zuckerberg, the world’s second richest man (according to the Forbes Real Time Billionaires list) did the same.

Back in 2012, when Zuckerberg was #40 on the list with an estimated $15.6 billion net worth, he refinanced his home in Palo Alto, California, with a 30-year adjustable rate mortgage at 1.05%.

While rates probably won’t go down to that level any time soon, the Federal Reserve’s rate cuts over the past few months have already had a noticeable impact. Median mortgage rates are currently hovering around 6.95% — down from 8% in October last year.

With the Fed slated to lower the benchmark rates further in the upcoming months, it might be a good idea to start looking at your options.

Ideally, you can land a lower rate by shopping around. According to a study from LendingTree, 56% of homebuyers shopped around when they refinanced their mortgage. What’s more, 81% of those who chose to refinance, came away with a lower rate than what they started with.

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