Posted by: islamicfinancingnews | July 6, 2013

Some reasons to consider refinancing Islamic loans

islam-31 With interest rates at historically low levels, many people believe the time is right to refinance their existing mortgage and there are a few good reasons to consider refinancing Islamic loans.

For borrowers who deal with conventional banks, refinancing their loans at a lower rate can reduce their payments and save a significant amount of money on interest. For those seeking Islamic finance alternatives, refinancing an existing mortgage can lower monthly mortgage payments to free up money for other things like additional savings or investments.

For some borrowers, refinancing is a way to switch from an adjustable-rate mortgage to a fixed rate loan which is easier to budget for, or to shorten the term of their loan. For example, you may find reducing your 30-year mortgage loan to a 15-year mortgage is not that much more expensive. You can input your information using a handy online mortgage calculator and if you find the new estimated payment fits easily into your budget, it could be time to contact your lender to find out more about your financing options.

While it will take some organization to gather together all the paperwork and documentation needed to get the refinancing process underway, many borrowers who share the financial goal of paying off conventional and Islamic mortgages as quickly as possible consider the effort time well spent.

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