Mark Zuckerberg Refinance Mortgage
The big news this week is that the face of Facebook Mark Zuckerberg refinanced his mortgage. Not only did he refinance (The guy needs a mortgage? Really?) but he got possibly the best mortgage interest rate ever at 1.05%. With interest rates for people like us hovering around the upper-3-to-lower-4 percent range according to Fannie Mae averages, that's pretty crazy.
It sounds too good to be true. And maybe it is. Let's look at the numbers according to the experts. The Wall Street Journal reports the loan is an adjustable rate mortgage that adjusts each month. It's based on the Libor plus .8 percentage point. Reportedly the maximum rate cannot exceed 9.95% - that's a high rate in today's market. Do you want that kind of gamble when we're at 60-year lows for interest rates? By the way, his house payment is about $20,000 a month.
With that said, we'd like to offer Mr Zuckerberg a good deal on a mortgage in Michigan (it's where the AmeriFirst corporate HQ is located). Wouldn't he rather have a home in Michigan (maybe a home with a great view on the lakeshore in Saugatuck, Holland or Grand Haven?) with a fixed rate that won't go up, starting in the mid-4 range? Again, this interest rate won't adjust each month, with the potential of becoming a nearly-10 percent rate someday.
If Mark Zuckerberg were to buy in Michigan (and he didn't make so much money), he could also take advantage of the USDA Rural Development loan, with no down payment requirement. AmeriFirst Home Mortgage is the leading RD lender in Michigan, so he'd be sure to have a licensed mortgage expert helping him find the best option for this zero-down* mortgage option. And he could find a great home in South Haven (rural development eligible!) or maybe inland in a nice, quiet, private community.
Wherever Zuckerberg would choose to end up in Michigan, we're sure that his Mark and wife Priscilla Chan would find great happiness in the beauty and splendor of the mitten.
Here's a look at our 60 Second Mortgage Tip about the Mark Zuckerberg refinance mortgage story:
Even if you're not Mark Zuckerberg (and clearly you're not - there's only one of him) you can take advantage of the current housing market and several mortgage loan options. If you're looking to a refinance mortgage to get a better rate, they're definitely at historic lows right now. You could even refinance and remodel.
You could also explore your mortgage options for buying a new home with options like the USDA Rural Development mortgage or an FHA loan. Whatever the case may be, getting started with a free guide may be the best first step. Download "The Only Mortgage Loan Options Guide You Need" at the button below. Education is a major key to success, in life and in home buying.
(creative commons photo credit)
*fees may apply on zero-down mortgage loans - talk to a licensed mortgage loan originator for details and to see whether you qualify