Posted by: islamicfinancingnews | August 5, 2013

Islamic loans and mortgage rates

islam-81 Deciding on Islamic loans is the right move for the practicing Muslim. Getting one of these products ensures the buyer will be kept safe from riba and will stay Sharia compliant. Still, there are other decisions you’ll need to make since these products often straddle the line between traditional and Islamic requirements.

For instance, there are some decisions to be made about mortgage rates. Basically, you can lock in with a fixed rate which doesn’t fluctuate with the market or go with a variable rate and take your chances with paying down the balance of the loan faster.

Getting the right advice that suits your situation is important. There are a few factors involved that will determine which of these rates is best for you. Remember, if you’re just starting out in your first property, it might be better to get a fixed rate since the amount you’ll pay doesn’t vary. On the other hand, the variable rate does lower the amount you owe on the loan quicker.

For people who need to be Sharia compliant, Islamic mortgages are important for several reasons. However, having good financial sense when you’re making decisions about how much you’ll pay also comes in handy.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: