According to DailyMail, Jennifer Lopez and Ben Affleck have reportedly taken out a $20 million mortgage on their Beverly Hills mansion, which they originally purchased in cash earlier in the year. The couple, both well-known celebrities in their 50s, closed the deal on the $60.85 million mansion in May. This recent decision to secure a mortgage from JPMorgan Chase Bank was documented in transaction documents dated August 31.
The mortgage obtained by Lopez and Affleck is for a 30-year term, covering their luxurious Southern California residence. The interest rate for the initial six years of the mortgage is set at 5.5 percent, with the principal and interest payments scheduled to begin in November 2033.
The purchase of the mansion was made through a trust fund managed by their business managers, Gary Kress and Brian Murphy. This allowed the celebrity couple to streamline the acquisition process.
While taking out a mortgage, especially one in the range of $20 million, may seem surprising given their financial status, it can be viewed as a strategic financial move. Tony Mariotti, the CEO of RubyHome Luxury Real Estate in Los Angeles, who was not involved in the transaction, commented on this choice. Mariotti noted that securing a loan with real property as collateral typically results in lower interest rates compared to unsecured loans. Additionally, the interest on such a mortgage is typically tax-deductible, providing potential financial benefits.
Mariotti emphasized that high-net-worth individuals like Lopez and Affleck often make calculated decisions regarding their financial portfolio. They consider various options, such as using the funds for renovations, acquiring additional real estate, or financing other projects. This approach allows them to maximize their financial flexibility and leverage their assets efficiently.
The couple’s search for a new home took nearly a year, with them residing in Lopez’s Bel-Air property in the meantime. Lopez is reportedly looking to sell her Bel-Air home for $42.5 million, which she originally purchased for $28 million in May 2016 and later added a $14 million mortgage.
Their newly acquired mansion, often referred to as the ‘Wallingford Estate,’ is a sprawling 46,000 square-foot property that sits on a five-acre promontory. It boasts 12 bedrooms, 24 bathrooms, a 12-car garage, parking for 80 vehicles, an indoor sports complex, a 5,000 square-foot guest penthouse, a caretaker house, and a two-bedroom guard house. The property also includes a zero-edge pool and various luxury amenities such as a gym, basketball and pickleball courts, a boxing ring, sports lounge, bar, hair and nail salon, home theater, wine cellar, whiskey lounge, sauna, and massage rooms.
Throughout their house-hunting journey, Lopez and Affleck had explored numerous high-priced properties in Los Angeles, with the process spanning over a year. The couple, often referred to as “Bennifer,” has been residing in a Beverly Hills mansion owned by Australian billionaire James Packer while actively searching for their ideal home.