Posted by: islamicfinancingnews | February 2, 2014

The ABC’s of refinancing

You need to take the time to think the refinancing process through completely. Whether you’ve got Islamic loans or the more conventional variety, refinancing is a big step and there are a few decision you’ll need to make and things to consider to move the process forward. Remember, Islamic mortgages are similar in some ways to their more conventional counterparts and refinancing is quite often an option with both.

There a are few common reasons why you might need to take this step.

  • Employment. Unfortunately, refinancing is an option in these tough economic times where losing a job could very well leave you looking at the loanbenefits of lower monthly payments.
  • Equity. You can tap into the money you’ve built up over the years in your home through refinancing as well. College educations and sicknesses that require lengthy hospital stays are two reasons for looking at changing your loan.

There are some bad times to refinance. For example, it’s important to look carefully at the prepayment clauses in your existing loan before you decide to take this step. These can be significant and a costly barrier that will stop some from going through with the rest of the process. Islamic mortgages can supply other benefits beyond Sharia compliance.

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