Posted by: islamicfinancingnews | May 22, 2013

Islamic mortgages and fixed rates. Here’s the advantages

Kita-Disyorkan-Memilih-Islamic-Loan Although choosing Islamic mortgages frees you up from dealing with Riba, there are a few choices you’ll need to make since these Islamic loans are very similar in many ways to more conventional Western style types of loans.

It’s a good idea to do a little homework so that you understand what choosing a fixed rate over any kind of amortization period will do for you. Although you will find different opinions with different companies, a fixed rate is quite popular with many first-time homebuyers for the first five years for several different reasons. First of all, many people who are buying their first home are unaccustomed to juggling all the different expenses a home requires and knowing what the mortgage payment will be over a set period of time gives them one less variable to worry about.

For the new homeowner who wants to play it safe, many experts in the field suggest they sign on for a fixed rate at least in their first amortization period. That allows for a stability in those early years of home ownership.

Of course Islamic mortgages don’t deal with interest in the same way as traditional home loans do, but getting a fixed rate mortgage means you can take advantage of the historically low rates that are available in today’s market.

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