90% of people probably have been deceived by life experiences just like I once was!

I used to naively think that banks earn interest slowly by holding onto mortgage loans? Later I realized that capital turns each mortgage into a capital game, and I naively thought that if I had a mortgage of 3 million, I would pay back 5.04 million, and the bank would earn interest over 30 years, just like a landlord collecting rent, slowly earning money.

It wasn't until later that I understood that mortgages are a magic circle of money-making!

Step 1: The debt rights are instantly liquidated; the bank doesn't wait 30 years! It directly sells the mortgage note of 5.04 million to other institutions for 4.04 million, instantly recovering the principal of 3 million plus 1.04 million in interest. With this money, it can lend again or sell the notes, making money faster than waiting patiently.

Step 2: The notes are transformed into financial products; the acquiring institutions are not fools either. They bundle a bunch of mortgage notes into a “3.5% annualized financial product.” Low risk, steady returns, everyone rushes to buy, and the institutions can still earn a lot after deducting interest.

Many people think banks like customers who repay early, but actually the opposite is true. You think early repayment is good for the bank, but in fact, the bank has already sold the notes. What they fear is that you disrupt the profit rhythm of subsequent institutions, causing a bunch of disputes. It’s not about feeling sorry for that tiny interest! So, banks dislike customers who repay early the most.

This kind of misconception exists everywhere in business and wealth fields. For ordinary people wanting to break through mental barriers, we should start by understanding the financial logic around us, and learn to view the world through the lens of capital operation!