Posted by: islamicfinancingnews | October 26, 2013

Islamic loans need to take into account monthly expenses

Islamic loans are a great financial building block when you’re looking to get into the real estate market, but you should start the process off on the right foot by deciding how much you can afford before you sign up with any financial institution. Here’s a few monthly expenses you need to factor in.

  1. Car loans. You might have been paying off a car for awhile now, but that payment doesn’t go away just because you’ve bought a home. Remember that keeping up with another big payment is a great way to get into the routine of paying down Islamic mortgages.
  2. Credit cards. Getting a mortgage is a good time to watch the spending you do on other loans and credit cards can be one of the biggest offenders when you’ve bought a house. If your new place needs something big, it’s more than likely better put off until a later date. A line of credit is the better option to get the money for these bigger projects.
  3. Student loans. Going to university or college means you more than likely need to pay some money back in the way of student loans. Your credit rating can be affected if you let this slide.

Even though your Islamic loans are a good business decision that keep you free from riba, you need to go further to keep your money house in order.


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