Will I Pay Less Interest on a Cheaper Rate?

Now, your whole life you've been told by every single person out there that the cheapest rate is the cheapest loan. Yes. Now, what I've discovered over managing billions of dollars of finance over the past 13 years is it's actually the shortest term that equals the cheapest loan. So I know it's a little bit of a head spin there, but the, the shortest term equals the cheapest loan, not the cheapest rate. For example, let's say, for example, we could get a 3.99% loan over 30 years, or we could get a 4.5% loan over 12 years. Which of those two loans do you think is the cheapest? Obviously the 12 years. Because for 18 years there's no interest payments. For 18 years there's no repayment going out of your salary. For 18 years you've got all your income to put towards investments or superannuation or lifestyle, whatever you wish. So what you really want is the cheapest loan. What you've been trained and marketed to think is that's the cheapest rate, but it's really the shortest term. And so if you borrow $400,000 from a bank, you know you'll pay back over $800,000 over that 30 year period. If you can pay that loan off in under 15 years, then you're going to be saving hundreds of thousands of dollars in interest and that whole in solely based on the actual total amount of interest paid. That's all you should be focusing on with any loan. What's my total amount of interest I'm paying over the term? A 400 grand loan, total interest paid will be over $400,000 because you're paying it over 30 years. Whereas if you can have that loan term 12 years or 15 years, your total interest paid will only be a few hundred thousand dollars, not $400,000. So just focus in on that. What's my total amount of interest paid for this loan? Not what's my rate.