JENNIFER LOPEZ JLO & Ben Affleck Make 'Colossal' Financial Move When Buying $60 Million Beverly Hills Home

Celebrities frequently make large real estate purchases and pay cash for their residences in full. After over a year of searching, Jennifer Lopez and Ben Affleck have finally purchased a $60.85 million home in Beverly Hills, but they are causing a stir with their choice of financing.

When the transaction was revealed, it was first stated that the dynamic couple paid the full price in cash; however, it's possible that J. Lo and Affleck had second thoughts. The U.S. Sun was able to get documentation indicating that they secured a 30-year house loan from JPMorgan Chase Bank. There are also some odd terms attached to the $20 million mortgage. In this volatile market, the interest-only rate for the first six years is 5.5 percent, which is a good rate. The rate goes up after that time, but they won't start deducting the house's principle until November 2033.

Tony Mariotti, CEO of RubyHome Luxury Real Estate in Los Angeles, provided the media outlet with an explanation for anyone wondering why a very rich couple would put themselves in such debt. He said, "There are a few reasons they might be using equity from their Beverly Hills property." "Compared to a personal loan, the interest rate on a loan secured by real estate is cheaper. Furthermore, the interest is tax deductible. If it were an unsecured loan, they wouldn't be able to utilize the money nearly anyway they choose. Those factors make it a wise financial decision.

Mariotti thinks Lopez and Affleck's choice to use this "common tactic," which is well-liked "among the wealthy for the tax benefit," was a "calculated decision." In his opinion, taking out a mortgage might also be done for other financial reasons, such as "buying more properties, renovating existing properties, financing a project such as a film production." Given that Lopez and Affleck have a combined net worth of around $300 million, they are most definitely not in need of money. They will take pleasure in their magnificent 90210 estate, which has 12 bedrooms and 24 bathrooms and is inhabited by many other one-percenters.