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Moneywise
Updated Sep 4, 2025
For many people, the only way to afford a home is to finance it with a mortgage and pay off that loan over time.
The median sale price for a U.S. home was $410,800 as of the second quarter of 2025, according to data from the Federal Reserve Bank of St. Louis. Given that the median annual income for U.S. households in 2023 was $80,610, it’s easy to see why the typical working American family 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.
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 significant 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%. Here’s the key: Shop around and don’t accept the first offer on the table.
According to a study conducted by LendingTree, 45% of homebuyers who received more than one quote received 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 the property type and the zip code in which it is located, the total cost, the 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.
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.
The average 30-year fixed mortgage rate is at a 10-month low of 6.56%, so it may be a good idea to start exploring your options.
You can typically land a lower rate by shopping around. According to a study by LendingTree, 56% of homebuyers shopped around when refinancing their mortgage. 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
One option for investing in real estate is the U.S. home equity market, a vast $34.5 trillion industry that has long been reserved for large institutional players.
Homeshares is transforming this space by giving accredited investors direct access to hundreds of owner-occupied homes in major U.S. cities(through their U.S. Home Equity Fund — without the headaches of buying, owning, or managing property.
The fund focuses on homes with substantial equity, utilizing Home Equity Agreements (HEAs) to help homeowners access liquidity without incurring debt or additional interest payments.
This approach provides an effective, hands-off way to invest in high-quality residential properties, plus the added benefit of diversification across various regional markets – with a minimum investment of $25,000.
With risk-adjusted target returns ranging from 14% to 17%, the U.S. Home Equity Fund could unlock lucrative real estate opportunities, offering accredited investors a low-maintenance alternative to traditional property ownership.
Another way to invest in real estate is by purchasing rental properties and becoming a landlord. But for the average American who wants to avoid the need for a hefty down payment or the burden of property management, crowdfunding platforms like Arrived make it easier to slice yourself up a piece of that pie.
Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
To get started, simply browse through their selection of vetted properties, each picked for potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100, potentially earning quarterly dividends.
100% Funded
The Vanzant
Single Family Residential
$415K
Invested
1,294
Investors
100% Funded
The Smokey
Vacation Rental
$983K
Invested
1,748
Investors
100% Funded
The SuiteSpot
Vacation Rental
$1.2M
Invested
1,672
Investors
These are a few examples of properties from Arrived. Check out the full list of single family residential homes and vacation rentals currently available.
Crafting an optimal investment strategy
Investing in real estate can offer portfolio diversification and potential passive income, but it’s only part of the equation for growing long-term wealth. To truly accelerate your net worth, you need expert guidance across all areas of your wealth — and that’s where the trusted team of financial planners at Range can come in.
For high-earning professionals or households making over $300,000, Range offers a smart, streamlined way to manage your full financial life — especially your real estate investments.
Through a strategic partnership with Engineered Tax Services, Range members receive free cost segmentation analysis and discounted cost segmentation studies. Range advisors will then use the study as part of a member's tax planning and strategy.
Cost segmentation shortens depreciation timelines — from the standard 27.5–39 years down to just 5–15 years—allowing you to claim significantly larger tax deductions sooner and keep more money in your pocket. Note that only investment properties qualify for segmentation studies.
Range also delivers proactive advice across your entire financial life — not just real estate or taxes.
From stock options and tax strategies to real estate and big-picture planning, Range integrates it all under one roof. With a transparent, flat annual fee — no hidden costs or percentage-of-assets surprises — you get AI-powered insights and comprehensive guidance designed to scale with your wealth.
Moneywise
Moneywise Editorial Team
The Moneywise Editorial Team is a group of passionate financial experts, seasoned journalists, and content creators who are deeply committed to providing unbiased, relevant, and accurate financial information. With years of combined industry experience, our team is dedicated to maintaining the highest journalistic standards and delivering informative and engaging content. From personal finance and investing to retirement planning and business finance, we cover a broad range of topics to suit the financial needs of our diverse readership. You can trust the Moneywise Editorial Team to empower you with the knowledge and tools necessary to make wise financial decisions.
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