Posted by: islamicfinancingnews | June 11, 2013

Consider your budget when choosing Islamic loans

islam-11 There are different options available to borrowers when it comes to loans, including Islamic loans. As a new homeowner, Islamic mortgages will help you stay free from riba, and knowing something about conventional products like fixed rate mortgages can help you budget your monthly finances with some certainty.

For example, if you’re coming to home ownership from a rental situation, you may have to juggle financial responsibilities like utility payments for the first time. Knowing exactly how much you need to pay out on a fixed rate mortgage each month can lessen some of the anxiety many new homeowners experience. Conversely, you may have no plans to move and, in this scenario, a fixed rate mortgage can help you budget your finances to put some money aside for repairs or renovations to your existing home. Finally, chances are interest rates will rise sooner or later and many people want to take advantage of the current low rates offered by lenders.

Whether you intend to repay the loan quickly or over the long-term, talk to an Islamic finance lender who will go over the different financial products available and help you choose the one best suited to your needs and budget.

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