Did Tom Brady Get A Deal On His Billionaire Bunker Mortgage?

Football legend Tom Brady moved to Florida over four years ago, but his journey to a permanent home has been anything but simple. After Brady hung up his cleats with the Tampa Bay Buccaneers, having brought his second team to a Super Bowl, he started work on a massive mansion in the posh area of Indian Creek Island. This exclusive area of Miami has only around 40 properties and has earned the name "billionaire bunker" for its pricey real estate and high-profile homeowners, including Jeff Bezos, who spent a total of $237 million on three properties within the past year as he completes his move to Florida. 

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According to documents sourced by The Real Deal, Brady recently negotiated a $35 million mortgage for his property. Brady bought the two-acre property several years ago and it has been under construction ever since. He originally had a $35 million construction loan with J.P. Morgan Bank, which was initiated in June 2023 and had an 8.25% rate during the construction period.

His new mortgage with Citizens Bank has much more favorable terms. The new $35 million loan has a starting rate of 5.63%, below the current average of 6.89% for a 30-year fixed-rate mortgage according to Freddie Mac's most recent weekly survey. The loan matures in 2054 and was signed for by the limited liability corporation tied to Brady, which owns the property. 

How Are Construction And Mortgage Loans Different?

One reason for the very different interest rates between these two loans is that construction and mortgage loans are separate types of financing. Brady's construction loan was set to mature in June 2025, a much shorter term than his new mortgage. 

A higher interest rate is standard for construction loans, which serve as short-term financing to subsidize the building of a property. Unlike a mortgage, where money is transferred simultaneously, a construction loan exists to pay off contractors and subcontractors throughout the loan. The interest rate is also higher because a construction loan is more speculative as it is tied to a property that isn't yet completed. Because of this, the borrower, whether an individual or a corporation, is more highly scrutinized. While Brady's notoriety and net worth likely made securing this loan a nonissue, getting a construction loan can be an arduous process requiring multiple appraisals and estimates of the property’s final value for many borrowers. 

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A Real Estate Champion?

Brady is no stranger to building his own home. In 2013, Brady and his then-wife Gisele Bündchen purchased a five-acre plot in Brookline, Massachusetts, for $4.5 million to build a large mansion. The couple listed the home for as much as $39.5 million before dropping the price several times. It was sold in 2021 for an undisclosed amount rumored to be close to its final $32.5 million listing price. The 2023 tax assessment shows a value of over $19.5 million. 

He's also putting the finishing touches on a luxurious estate in the wealthy Brentwood neighborhood of Los Angeles, California. He and Bündchen previously had a home in the area. They bought land in 2008 for $11.75 million and designed a home using starchitect Richard Landry, the same mastermind behind their Brookline home. The house was sold in 2014 to rap mogul Dr. Dre for a reported $40 million. 

Over the years, Brady has also purchased apartments in Boston and New York City, but he has a particular passion for building his dream home. Will he stay in his new Indian Creek home until his 30-year mortgage comes due? Only time will tell. 

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