Some banks allow the interest on a loan to accrue (compound). We only use financing if we believe there will be more made elsewhere and/or in the policy itself. When that is the case, it is better to compound your money at the higher rate than save at a lower rate. The longer these compound, the more money is made. It’s the same reason why all banks borrow money from some to loan it out to others at a higher rate. Although they have the ability to be debt free, they would make a lot less money if they were.
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