How does islamic finance /mortgage actually work in plain english please? - english for finance
I do not understand the financing, at best, and it is even more confused.
Friday, January 22, 2010
English For Finance How Does Islamic Finance /mortgage Actually Work In Plain English Please?
5 comments:
Well, on the western side ... They borrow money and pay it with interest, but .... What is bought with it is up to you.
Islamic banks in ...... based upon the length of their payments by the banks .... Discover how much interest has been paid. After buying the house, then ... the rudder is estimated at interest, that the selling price that you bought, to ... then again for you at this price.
So, you want to buy a house for $ 100,000. Back in 10 years ... States are parties, that the interests of the 100,000 others.
Then you have to sell the house for 200,000 U.S. dollars .... and the payments ... not possess the property until we pay for it.
Do not give your money ... So this is not a loan .... their "job".
I hear that changes a little bit .. So you can sell your lease .... another thing ... after 5 years when a new house .... because he has never owned this house ... You do not get the money you have inserted. Although it is a house outside.
Islamic banking and financing system to a series of "financing" or "Islamic financial instruments. These modes are Murabaha, Ijarah, Musharakah, Salam, istisna, etc., and turn according to the nature of the contract.
The type of financing "or Ijara mortgage is Ijarah. Here are the basic principles of Ijarah are:
(1). The transfer of rights to use an asset to another person for an agreed period, according to a study.
(2). The value of the assets must be identified and quantified.
(3). Everything can not be used without much, not be leased. eg. The silver, wheat, etc.
For more information, visit the "Free Study Notes" by the Academy for International Modern Studies or goals (a UK-based online by the Institute of Islamic Banking and Finance, www.learnislamicfinance.com)
I am not a scientist or a Muslim.
To the best of my knowledge and understanding, in simple terms how it works:
Ijara - The Bank has the cost of the house, who would you pay more interest if you have a mortgage with a traditional bank loans that much money in total. Then pay. They lend the bulk of the interest before.
I hope that others will know .....
Interest is Haram is forbidden in Islam. So, if you borrow to pay exactly the same amount that you borrowed. Not interested.
If the right of instant messaging have not Muslims the right to calculate interest. so that the cost of money in place, of course, with the same speed.
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