Posted by: islamicfinancingnews | June 5, 2012

Refinancing Islamic mortgages needs to be carefully planned

While Islamic finance offers practicing Muslims many options when it comes to the different types of Islamic mortgages available to refinance their home, many homeowners share common reasons for refinancing. These can include a desire to lower their monthly mortgage payments, repay a loan promptly and reduce the amount of interest owing, or consolidate debts.

While all these are good reasons to refinance a loan, you need to make a few decisions along the way. You might want to stay with the same financial institution you’ve been dealing with, or try to get better rates and terms with a new one. Remember that getting expert advice here will help you to make the right decisions.

For any refinancing option you choose, it’s important to think carefully and examine the specific terms of the loan including monthly payment amounts, interest rate, length of the the loan and administration costs associated with the refinancing process so you can meet your financial obligations.

Even homeowners who are knowledgeable about mortgages should always consult with their lender when they plan to refinance so they can be informed of current interest rates and the most up-to-date Islamic finance products available including Islamic loans free of Riba.

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