Mark Zuckerberg Got a Sweet Deal on His Mortgage

Mark Zuckerberg got a sweet deal on the $5.95 million mortgage on his Palo Alto, Calif., home with an interest rate of just 1%, according to a report.

Bloomberg examined public records for the property and found the Facebook CEO’s 30-year adjustable rate mortgage starts at 1.05%. The average rate on a one-year adjustable rate mortgage was 2.69% on Monday, according to FreddieMac. The 30-year fixed rate was around 3.79%.

Zuckerberg’s 1.05% rate began in May. However, the loan adjusts each month starting in June with the rate calculated by the London Interbank Offered rate (Libor) plus 0.8% percentage points, according to Bloomberg. The rate can’t exceed 9.95%. Monthly payments, including principal and interest mortgage payments on the property, would start at $19,275. Zuckerberg’s previous ARM had a 1.75% rate and a monthly payment of $21,256.

The Facebook founder bought the 5-bedroom, 5,617 square-foot home last May. Valued at $13.5 million, Zuckerberg paid $7 million and financed the rest. Meanwhile, Facebook’s stock has continued to languish after its long-awaited May IPO. Initially priced at $38, on Monday, the stock had once again fallen below $30 a share. Zuckerberg’s personal wealth hit $21 billion shortly after the IPO.

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