The U$88 million estate was bought over the summer with a 40% downpayment, Business Insider says. The couple then arranged the interest-only home loan.
With a loan that starts low but increases when borrowers begin to pay off the principal, it can be a risky strategy, plus of course interest rates are now on the rise.
Interest-only loans have also been blamed for their role in the financial crisis and now make up only a small share of US mortgages.
However, with the couple estimated by Forbes to worth more than a billion dollars, there shouldn’t be too much for their lender to worry about!
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
They may be one of the richest couples in North America but Beyoncé and Jay-Z have reportedly bought a home in Los Angeles’ swanky Bel-Air neighbourhood with an interest-only mortgage.