> The only thing I've "lost" is future profits but you also could have just paid off the loan entirely in cash to the same effect. but this is a real loss, sin

> The only thing I've "lost" is future profits but you also could have just paid off the loan entirely in cash to the same effect. but this is a real loss, since the original loan contract was for 8% p/a for X years. In a different country like australia, a fixed term loan cannot be paid off without the expected interest. This is why i am confused as to what makes refinancing work - who eats the loss?