Posted by: islamicfinancingnews | May 9, 2013

Your Islamic finance lender has advice on refinancing

islam-31 Whether you’re dealing with a more traditional western style banking institution or an Islamic finance lending company, refinancing your mortgage could be a wise financial move by helping you to pay off your mortgage sooner and saving you money in the interim.

There are many reasons why people choose to refinance their existing mortgage and some of the top considerations include:

  • Refinancing as a way to consolidate debts and lower monthly payments.
  • Purchasing a big ticket item (i.e. car, appliance, furniture) at a low interest rate rather than using a high interest credit card or credit offered by a retailer.
  • Transferring your mortgage to a bank or financial institution with a lower rate, or switching your loan from a fixed rate mortgage to a variable rate mortgage, or vice versa.

Bringing your debt under control is a huge factor in favour of mortgage refinancing. Reducing your monthly payment and/or shortening the term of your mortgage loan are added advantages. Choosing bi-weekly payment options or increasing your monthly payment amount provides another refinancing benefit that allows you to build equity in your home faster.

Paying off your home loan earlier means you will have 100% ownership of the property even sooner. Practicing Muslims and others should consider the competitive financing alternatives Riba free Islamic mortgages can offer.

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