Being wealthy means never having to think about mortgage payments ever again, right?
Well, it turns out even the rich and famous use a little financing, sometimes. The only difference is that, for them, it’s a choice.
Taking out a mortgage can be a smart financial move, even if you have the cash to buy a home outright. And that’s doubly true today, when mortgage rates are hovering near record lows.
Meghan Markle and Prince Harry
You may have already heard that Meghan and the prince landed in a $14.6 million home in Santa Barbara, California. But did you hear the former royals obtained a $9 million mortgage for their new digs? So says Variety.
If they got a 30-year loan like us commoners, we’re talking monthly payments approaching $50,000.
Beyoncé and Jay Z
This musical duo is known to borrow tens of millions of dollars for luxury home purchases.
Public records show the couple financing their $88 million mansion in Bel-Air with a $52.8 million mortgage from Goldman Sachs, The Wall Street Journal reports.
Chrissy Teigen and John Legend
After selling their previous pad, the model and musician recently upsized to a Beverly Hills haunt for $17.5 million.
But the famous couple is likely still taking the mortgage route. Last winter, Teigen confirmed on Twitter she and her husband were indeed making payments on their California home.
Of course, you always want to make your monthly mortgage payments, even if you’re a famous celebrity.
Sheen sold his Beverly Hills mansion for a big loss, two years after facing foreclosure for reportedly owing more than $80,000 in back mortgage payments.
The examples of a few celebrity borrowers show how home loans can help the rich get richer. You also might use a home loan to build wealth.