Re:Ecuador Says It Still Backs Assange, but WikiLeaks Says I...
by jdmichal on Tuesday October 18, 2016 @03:28PM
(#12737858)
Almost guaranteed that this was not a subsidy. Even for the extremely wealthy, banks are not in the business of giving away money for nothing.
The mortgage was likely only one piece of the deal negotiated. It costs the bank nothing to write an at-cost mortgage, but gives Zuckerberg value though additional liquidity. Items that cost nothing yet provide value to the other side are excellent things to throw on the table during negotiations to help seal the deal. One example: The bank may have the adjustable rate tied to the balance in an asset management account -- if Zuckerberg takes his money elsewhere, the mortgage also becomes profitable.
The mortgage was likely only one piece of the deal negotiated. It costs the bank nothing to write an at-cost mortgage, but gives Zuckerberg value though additional liquidity. Items that cost nothing yet provide value to the other side are excellent things to throw on the table during negotiations to help seal the deal. One example: The bank may have the adjustable rate tied to the balance in an asset management account -- if Zuckerberg takes his money elsewhere, the mortgage also becomes profitable.