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or many Americans, owning a home means taking out a mortgage and paying it off over time. The median U.S. home sale price was $503,800 in the first quarter of 2025, according to Federal Reserve Economic Data. With median annual wages at just $61,984, affording a down payment is a significant challenge. However, for those with vast wealth, buying a home outright isn't necessary. Instead, they may take out mortgages as a strategic move.

    For instance, billionaires like Mark Zuckerberg and Elon Musk have taken out multimillion-dollar mortgages to maintain liquidity and keep cash available for other investments. This approach allows them to avoid tying up their funds in illiquid assets like real estate. Even celebrities with enormous wealth, such as Jay-Z and Beyoncé, who have an estimated combined net worth of $1.6 billion, secured a $52.8 million mortgage on their $88 million Los Angeles estate.

    According to Robert Cohan, managing director at Carlyle Financial, this approach can provide financial flexibility for the wealthy. They can pay off the mortgage whenever they choose and still benefit from an affordable interest rate. For those outside the elite 1%, securing a good mortgage rate requires shopping around and getting quotes from multiple lenders.