Posted by: islamicfinancingnews | December 28, 2012

Islamic finance provides homeowners with financing options

islam41 Practicing Muslims rely on Islamic finance solutions when they need no interest financing and home equity loans are a good choice for homeowners because the financing is based on the equity you have in your home.

Debt consolidation is one of the most common reasons for using home equity loans. Paying off outstanding credit card and other high interest debt will leave you with one monthly payment that’s probably less than the other debts combined, with a lower interest rate. In addition to improving your credit profile with one monthly bill, you can deduct the interest on a home equity loan because the debt is secured by your home.

Other situations to consider using home equity loans include plans to buy big-ticket items like a car or boat, paying post-secondary education costs for children, or to cover large medical expenses or other types of emergency costs. Home improvements which can increase the fair market value of your home are another example for choosing this type of loan. Keep in mind, improvements such as remodeled kitchens and bathrooms add the most value to your house.

Consult with your lender who can help to explain the different types of loans that are available to homeowners including Sharia compliant Islamic loans.


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