I think I understand what you mean, but I still think this is not a burn, at least not in the sense that I understand it.

When the entire loan is paid, the debt that you created with the bank is settled, and the bank remains with the interest. But all the money you added in the principal are already in the pocket of the house owner. What was exchanged was some sort of a promise between you, the bank and the house owner. But no money was burned in this process. There was some promise made, that you kept for 20-30 years, to pay, and the bank got paid some interest because it supervised this payment process.

No money was actually burned. Which, like I said, is a problem.