Posted by: islamicfinancingnews | October 9, 2013

Islamic finance and home renovation financing options

Islamic finance and home security work together

Islamic finance and home security work together

Once you’ve settled in your new home that’s being financed with Islamic loans, you’ll soon see there’s some renovations both big and small that need to be done to keep up with your equity. There’s no need to fret if you don’t have the money handy to take these on right away since there are several different options to pay for home upgrades.

  • Start small and look to your credit card to finance those little jobs you can afford to pay back quickly. Remember, you don’t want to carry a balance for too long as credit cards have notoriously high interest rates.
  • Lines of credit. Here you’ll need to balance the size of the renovation with the time you’ll need to pay the money back. The amount you can access is usually limited to a percentage of your home’s value and there is often some kind of legal fee to get the paperwork done.
  • Mortgage refinancing is another avenue usually reserved for those bigger projects that cost more than is feasible with the other options. There are often legal and appraisal fees tacked on.

Islamic finance will get you into the home you want, but you’ll need to keep these other financing options open so you can upgrade when necessary.

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