Adam S. Levy, Carly Johnson and Justin Enriquez for Dailymail.com
02:32 09 Oct 2023, updated 02:32 09 Oct 2023
Jennifer Lopez and Ben Affleck took out a $20 million mortgage on the Beverly Hills, California mansion they purchased in cash earlier this year.
Lopez, 54, and Affleck, 51, who struck a deal to buy the $60.85 million mansion in May this year, opted for a mortgage from JPMorgan Chase Bank a few months later on Aug. 31, the US Sun reported Sunday, citing documents. according to the deal.
An A-list couple took out a 30-year mortgage to buy a luxury home in Southern California, the publication reports.
Lopez and Affleck, whose search for a home took nearly a year, purchased the house, which they call the “Wallingford estate,” through a trust fund managed by their business managers Gary Kress and Brian Murphy, The US Sun reports.
A mortgage on a 12-bedroom, 24-bathroom home would have an interest rate of 5.5 percent for the first six years; with November 2033 being the projected date when principal and total interest will begin to be paid.
Lopez and Affleck’s mortgage, which comes at a 22-year high in mortgage rates, was described by Tony Mariotti, CEO of Los Angeles-based RubyHome Luxury Real Estate, as a “smart financial move” for the outlet. in the deal.
Mariotti said the celebrity couple had acted shrewdly, noting that “the interest rate on a home-backed loan is lower than on a consumer loan”; and that “interest is also tax deductible.”
Mariotti continued: “They can use the funds pretty much any way they want, which wouldn’t be the case if it was an unsecured loan.”
A luxury real estate expert described the real estate deal as “a common tactic for wealthy people to gain tax benefits” who “usually make smart decisions.”
The wealthy “look at their entire portfolio of assets and begin to calculate the best path forward for each specific step,” which might involve renovating an existing home; buying more real estate; or financing other projects.
Before purchasing the Wallingford estate, the couple lived in Lopez’s home in nearby Bel Air, California, which the actress/singer wants to sell for $42.5 million.
The publication reported that records indicate Lopez originally bought the home in May 2016 for $28 million and added a $14 million mortgage to it four months later.
Murphy’s business manager was listed as a trustee in the deal, which was also handled by JPMorgan Chase Bank.
The deal on the stunning 46,000-square-foot mansion took just one week, with the couple paying nearly $15 million below the $75 million asking price, TMZ reported in late May.
It first hit the market in 2018 for $135 million, but that price was slashed by nearly half when it was relisted this year. The home sits on a five-acre headland and boasts 12 bedrooms and 24 bathrooms.
The listing states that it has been “recently remodeled and expanded” and has a 12-car garage and 80-space parking.
The property also includes a “one-of-a-kind” indoor sports complex, a 5,000-square-foot guest penthouse, a caretaker’s house and a two-bedroom security house.
Thanks to the indoor sports complex, the couple has a full-fledged gym at their disposal, as well as basketball, pickleball courts and a boxing ring. There is also a sports lounge and bar.
According to TMZ, it also features a full-service hair and nail salon, home theater, wine cellar, whiskey bar, as well as a sauna and massage rooms.
The zero-edge pool is located behind the main house and overlooks the grounds. The territory has two separate, closed entrances.
Brett Lawyer, who has worked with Katy Perry and Madonna, represented the couple in the sale. Meanwhile, the seller was represented by Ginger Glass of Compass.
Lopez and Affleck have pulled out of escrow on three properties over the past few months while in the midst of house hunting.
The Argo actor recently sold his mansion for approximately $30 million.
The lengthy search for housing for the newlyweds and their mixed family has been going on for about a year.
The couple was often photographed while visiting expensive real estate in the Los Angeles area.
The A-lister, nicknamed “Bennifer”, has been hunkering down, renting Australian billionaire James Packer’s $60 million Beverly Hills mansion while house hunting.
The A-list couple is more than a year removed from their Aug. 20, 2022, wedding at Affleck’s estate outside Savannah, Georgia, which came more than a month after they exchanged vows in Las Vegas on July 16, 2022.
Affleck has three children with ex-wife Jennifer Garner, 51: daughters Violet, 17, Seraphina, 14, and son Samuel, 11.
Lopez is mother to 15-year-old twins Emma and Maximilian and 55-year-old ex-husband Marc Anthony.