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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.
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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 who’s a billionaire a couple or several times over may not have to worry so much about cash flow. But borrowing for a home allows them to hang onto their cash for other purposes, rather than tying their money up in an illiquid investment.
Take Hollywood’s it couple, Jay-Z and Beyonce, with an estimated combined net worth of roughly $3.2 billion, for instance. But back in 2017, when their net worth was $1.6 billion, the power couple took out a $52 million loan to buy a hillside estate in Los Angeles., worth $88 million, according to a report published by the L.A. Times.
"Depending on how their portfolio looks — what they’ve invested in — I think there could be a huge benefit to Beyoncé and Jay-Z. It gives them flexibility, and they could pay the mortgage off anytime," Robert Cohan, managing director at Carlyle Financial, said in an interview with Business Insider.
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 .
Mortgage Research Center can help you shop around for rates from vetted lenders near you.
All you need to do is enter some basic information about yourself, such as property type and zip code in which it is located, total cost, desired down payment, and your annual income and credit score.
Mortgage Research Center then matches you with lenders best suited to your needs. You can then set up a free, no-obligation consultation to further assess whether they’re the right fit for you.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
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.
Mortgage Research Center is also a beneficial tool if you are looking to refinance your current mortgage.
The process is the same — you need to enter some information about yourself and your current mortgage, and Mortgage Research Center will match you with vetted lenders offering competitive rates.
More ways to invest in real estate
Buying additional properties to yield rental or investment income can be inconvenient, even for accredited investors. Not only do you have to worry about timely maintenance and property taxes, but you also have to deal with the hassles of being a landlord if you are thinking about renting it out.
This is where First National Realty Partners (FNRP) comes in. With a minimum investment of $50,000, accredited investors can own a stake in grocery-anchored institutional-grade commercial real estate without having to do any of the legwork.
FNRP’s team of experts manages the entire life cycle of the investment — from due diligence of properties to acquisition and tenant management. The firm typically leases its properties to national brands selling essential goods, like Walmart, Whole Foods, and Kroger.
FNRP also pays out any positive cash flows as dividends quarterly, helping you generate passive income without worrying about property and tenant management.
For those looking for affordable investment options, new investing platforms are making it easier than ever to tap into the real estate market.
For accredited investors, Homeshares gives access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.
With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
With risk-adjusted internal returns ranging from 12% to 18%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.
If you’re not an accredited investor, crowdfunding platforms like Arrived allows you to enter the real estate market for as little as $100.
Arrived offers you access to shares of SEC-qualified investments in rental homes and vacation rentals, curated and vetted for their appreciation and income potential.
Backed by world-class investors like Jeff Bezos, Arrived makes it easy to fit these properties into your investment portfolio regardless of your income level. Their flexible investment amounts and simplified process allows accredited and non-accredited investors to take advantage of this inflation-hedging asset class without any extra work on your part.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
