Islamic home buying
Renting Or Owning: Here’s Some Benefits To Owning
Sure, the market rates are low and there’s always Islamic finance institutions like us here at ijaraloans.com to make sure that you get into the house of your dreams with a deal that won't have you bound by Riba, but there are other questions you need to look at beyond Sharia compliance.
7 Reasons To Own A Home (also see Renting vs Buying)
•Tax Breaks... The US Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, and some of the costs involved in buying your home. With an Ijaratm transaction, you may deduct the profit paid along with the property taxes.
•Gains... Between 1998 and 2002, national home prices increased at an average of 5.4% annually. While there's no guarantee of appreciation, a 2001 study by the National Association of Realtors found that a typical homeowner has approximately $50,000 of unrealized gain in a home.
•Equity... Money paid for rent is money that you'll never see again, but Ijaratm rent to own payments let you build equity ownership in your home without Riba.
•Savings... Building equity in your home is a ready-made savings plan. And when you sell, you an generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
•Predictability... Unlike rent, your Ijaratm payments don't go up over the years so your housing costs may actually decline as you own the home longer. However keep in mind that property taxes and insurance costs will rise.
•Freedom... The home is yours. You can decorate any way you want and be able to benefit from your investment for as long as you own the home.
•Stability... Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.
Homeowners refinance for different reasons, but the process of refinancing a mortgage should result in some benefit to the homeowner. A borrower may choose to refinance to obtain a lower interest rate and a lower monthly payment, or change the type of loan that they have. Borrowers who started with a high-interest loan can often reap the rewards of an improved credit standing by refinancing. Some homeowners refinance to “cash out” and take advantage of the equity they have earned, while others may choose to refinance to shorten their loan term and build equity more quickly.
Find out if now is the right time to refinance by calling our office! You may be able to lower your monthly payments or reduce the time it takes to pay off your loan. You may also be able to save even more if you use your refinance proceeds to pay off credit card or other installment debt, since mortgage interest is usually 100% tax-deductible, and interest on consumer debt is not.
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Contact our office and talk to one of our professional advisors for more information and get the best rate ever!