Posted by: islamicfinancingnews | April 28, 2013

Build your equity with Islamic mortgages

islam-11 If you are thinking of building equity by purchasing your first home or buying your next home, you need a working knowledge of what equity means, as well as understanding all you can about Islamic financing options like Islamic mortgages that are available to help you achieve your goal.

Equity is the difference between the market value of your home and the amount outstanding on your mortgage. Owning a home allows you to build equity, so the sooner you can afford to purchase a place of your own, the quicker you can start building equity. Unlike monthly rent, a homeowner builds equity in the home with every monthly mortgage payment – the more payments you make and the longer you stay in your home, the more equity you build. Unlike most commercial products you buy, your home almost always increases in value over time, which allows you even greater equity.

With increased equity comes more financial flexibility to borrow money against the equity in your home for a variety of things such as lines of credit to repair or renovate your home, or Islamic loans to consolidate debts, pay for school tuitions, or meet unexpected expenses that often come our way.


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