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For many people, the only way to afford a home is to finance it with a mortgage and pay off that loan over time.

During the first quarter of 2025, the median U.S. home sale price was $503,800, according to Federal Reserve Economic Data. Given that median annual wages were just $61,984 during the last quarter of 2024, it’s easy to see why the typical working American 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.

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, rather than tying it up in a relatively illiquid asset like real estate.

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 major 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%. The key is to not accept the first offer on the table — and to shop around and get quotes from at least two-three lenders.

According to a study conducted by LendingTree, 45% of homebuyers who received more than one quote got a lower rate than their initial one .

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. Median mortgage rates are currently hovering around 6.95% — down from 8% in October last year.

With the Fed slated to lower the benchmark rates further in the upcoming months, it might be a good idea to start looking at your options.

Ideally, you can land a lower rate by shopping around. According to a study from LendingTree, 56% of homebuyers shopped around when they refinanced their mortgage. What’s more, 81% of those who chose to refinance, came away with a lower rate than what they started with.

Read more: Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead

Even for accredited investors, purchasing additional properties for rental or investment income can be a hassle. Beyond ongoing maintenance and property taxes, there’s also the added burden of managing tenants and the responsibilities that come with being a landlord.

This is where First National Realty Partners (FNRP) comes in. Accredited investors can own a stake in grocery-anchored institutional-grade commercial real estate without having to do any of the legwork.

FNRP’s team of experts manages the entire life cycle of the investment — from due diligence of properties to acquisition and tenant management. The firm typically leases its properties to national brands selling essential goods, like Walmart, Whole Foods, CVS, and Kroger.

FNRP also pays out any positive cash flows as dividends quarterly, helping you generate passive income without worrying about property and tenant management.

Another option for investing in real estate is the U.S. home equity market, a vast $36 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.

Homeshares also gives accredited investors access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.

With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.

With risk-adjusted internal returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.