Client Video 3 - Interest Rate vs Interest Paid

So I know it's been a while since you came on board with this and you're getting the results there, but a lot of the times we're getting the question, why am I paying this higher rate? All my friends are on this lower rate there. How come my rate's a little bit higher than everyone else's? When we first sat down, we actually asked you the question saying we've got access to every bank and every loan. We can do the low rate, say down there at 4% over 30 years, or we can do a slightly higher rate, no more than the standard variable, at say 4.75% over 12 years. What we want you to enjoy is the cheapest loan. That's very different from the cheapest rate. The cheapest loan is the one with the least amount of interest paid in total. Total interest paid is the figure you should be looking at, not the interest rate. So if you're paying a mortgage every single month at 3.99% for the next 30 years, you borrow $400,000, you'll pay back well over 800 grand. Remember that loan you had before you came on board with this? It wasn't doing anything for you, it wasn't helping you pay off your debt. But yeah, it had a lower rate, but didn't mean you were debt free faster. So what we've set up for you is a program which is going to get you debt out of your life in under 15 years. Yes, the rate is a little bit higher, but the term is shorter, the amount of interest paid is less, and. And as a result, you're saving the most amount of money. You want the cheapest loan, which is the shortest term, not necessarily the cheapest rate. So I know it's a little bit of a head spin to think about because all you've heard is rate, rate, rate, rate, rate. Well, who's telling you rate? The banks are telling you rate, the brokers are telling you rate. Why? Because they want you in debt for as long as possible. The longer you're in debt, the more money they make.