Posted by: islamicfinancingnews | March 23, 2014

Islamic home financing and shaving years off your mortgage

Whether you’ve decided on Islamic mortgage financing or a more contemporary Western-style loan, you’ll want to shave as much time off the amortization period as possible so you can become mortgage free faster. Taking advantage of the following tips will come  in handy.

  • Many banks now offer prepayment options that you can put directly down on the principal without adding on interest. Taking advantage of this house huntingoption can lower the amount you owe and the overall length of the time you need to pay the mortgage off.
  • If you’ve  got a little extra money you can make an extra payment occasionally to knock down the overall amortization as well. You need to check with your financial institution to make sure they have these options available and of course your own finances to see if you have the extra money on hand.

Although islamic home financing is Sharia compliant and therefore doesn’t deal with interest in the same manner as a more traditional Western-style loan, it’s a good idea to look at your options to pay the entire amount off early.





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