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Remaining cost is the relevant starting point for refinancing
Past interest already paid belongs to the history of an agreement.
Comparing its original total with the full total of a new loan mixes past costs with future commitments.
A current settlement position and the remaining scheduled cost make the alternatives clearer. New charges and timing must also appear before a refinancing proposal is described as a saving.
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Definitions
- Security
- Asset or interest supporting an obligation under the agreement, with consequences determined by its terms and applicable law.
- Guarantor
- Person who takes on obligations described in a guarantee; the extent of liability must be read in that agreement.