Posted by: islamicfinancingnews | February 25, 2014

Ijara loans and refinancing: Here’s what you need to know

The decision to get Ijara loans for the Muslim family is the right thing to do to stay Sharia compliant and away from riba. However, when it comes time to thinking about refinancing, there are many different layers to the decision process you have to go through. Here’s a quick three-part checklist you can use to make the process go more smoothly.

  1. Make Some Decisions. There are a few decisions you need to make and one of the questions you need to ask yourself is how long you plan to stay in your present home? Refinancing works better when you plan on staying put for a while. As well, find out if you’ll incur any penalties for home for salebreaking existing loans and how much you’ll lose.
  2. Document. When you go through the process of refinancing, you’ll need to have all your documentation together, just like you did when you took out the original Islamic loans usa.
  3. Choices. There’s quite a marketplace for these and you’ll need to choose from second mortgages and adjustable rate or fixed rate loans and a variety of others.

As you travel the path of home ownership, you’ll see there are many similarities between how ijara loans and more conventional Western loans work.

 


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