Banks control every aspect of your loan: they decide your interest rate, terms, and repayment schedule based on a deep dive into your credit score and income. You repay principal plus interest, which benefits the lender. The speaker calls this arrangement a "financial colonoscopy" that leaves borrowers without real control.
Now they're gonna look at several things. There's gonna be lots of hoops you potentially have to jump through. They're gonna look at your credit score. They're gonna look at whether or not your income is sufficient. Lots of things. If you've ever gone and applied for a mortgage, you know exactly what I'm talking about. Now, good teammate of mine refers to this process as a financial colonoscopy. So the loan's issued. It's gonna be based on an interest rate that they decided, terms that they decided, a repayment schedule that they decided. Now think about that. Does that sound like control at all? 'Cause I don't think it does. You have to repay the loan. And when you repay the loan, you're going to have to pay back the principal plus the interest. No one is handing out free money. And you have to also understand that all capital has a cost, even your own capital. The interest, it's a transfer of capital from your financial system to the lender. You're not the one benefiting from this transaction. Somebody else is. Want to find out more about how you can become your own banker? Click the link below or head over to learnwithjay.com. That's learnwithjay.com.
