Trump pays off mortgage, offering rare glimpse into world of billionaires taking home loans – Chicago Tribune

President Donald Trump’s recent decision to pay off a $1.2 million loan on a home he owns in Palm Beach raises an intriguing question — namely, why would a billionaire bother with a relatively tiny mortgage?

True, Trump was in a tough financial spot back in 1994, when he took the 25-year mortgage from Merrill Lynch Credit Corp. But Trump kept the loan even as his finances rebounded nicely.

In general, titans of industry don’t bother with mortgages on their homes. But there are exceptions. When beer billionaire Jude Reyes paid $28 million for an oceanfront mansion in Lost Tree Village last year, he borrowed $20.8 million.

Reyes took the adjustable-rate loan at a rock-bottom interest rate of 2.375 percent, but he had to shell out $72,800 in Florida documentary stamp taxes, among other costs, to open the loan.

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