Posted by: islamicfinancingnews | July 17, 2013

Here’s some tips for choosing the right Islamic loans

islam-81 You need to choose carefully when you’re looking through all the different offers you’ll get when shopping for Islamic mortgages. Of course the company you finally arrive at is one of the bigger considerations, but even after that part is over, you need to decide on the right kind of Islamic loans to suit your situation. Whether you pick a closed or variable rate mortgage is one of the factors that dictates how long it will take to pay the money off.

Closed Rates: These are generally best for folks that want to play it safe and know exactly how much money they need to set aside every month. Closed rate mortgages have interest rates that don’t move around with the prime rate and are generally considered good for first time buyers as there’s no big fluctuations to get used to.

Variable rate mortgages: More adventurous types will be interested in variable rate mortgages since the interest rate fluctuates. These are good for people who want to play the market and take advantage of the interest rates when they are dipping. Keep in mind, you can also wind up in a situation where the rates go up and grab a bigger percentage of your money.

Choosing the right Islamic loans means making sure you take into account all the aspects involved.


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