Should you go for a Fixed or Variable Rate Mortgage? #bankrate #mortgage #rates


#variable rate mortgage

#

Contact moneysupermarket.com at Moneysupermarket House, St David’s Park, Ewloe, Flintshire, CH5 3UZ. Moneysupermarket.com Ltd 2013

Moneysupermarket.com Limited is an appointed representative of Moneysupermarket.com Financial Group Limited, which is authorised and regulated by the Financial Conduct Authority (FCA FRN 303190). Moneysupermarket.com Financial Group Limited, registered in England No. 3157344. Registered Office: Moneysupermarket House, St. David’s Park, Ewloe, CH5 3UZ. Telephone 01244 665700

Cookie Use

MoneySupermarket uses cookies, small text files which are downloaded to your computer’s hard drive when you visit most websites.

Cookies are harmless files which can help improve the experience. Cookies allow websites to respond to you as an individual. The website can tailor its operations to your needs, likes and dislikes by gathering and remembering information about your preferences.

By accepting cookies, MoneySupermarket is able to provide you with a better service and customise your experience with us.

Read more


Subprime Mortgage Loans- Buy or Refinance with Bad Credit #mortgage #finder


#subprime mortgages

#

SubPrime Mortgage Loans

Buy or Refinance with Bad Credit

As more people have seen their fico scores drop our sub-prime lenders have introduced new mortgages for people with poor credit scores, late payments and more. In most cases, people need a “subprime mortgage” when they have lack of equity low credit scores or difficulties documenting their income. For the first time since the program’s inception, rates on loans for people with low credit scores have fallen to a never-before seen level for qualified borrowers. And unlike most high risk lenders, we refer you to companies that do not charge pre-payment penalties when our customers want to refinance.

Compare Lender Quotes on Subprime Mortgage Loans for Refinancing or Purchasing

People that need a second chance loan will benefit from new opportunities from multiple lenders. Talking to subprime lenders and comparing offers are your next steps.

Learn more about sub-prime mortgage loans for refinancing adjustable rates, bill consolidating, lowering monthly payments and cleaning up bad credit. If your credit scores have fallen recently, a subprime loan or 2nd mortgage may be the perfect interim loan until your credit rebounds.

Sometimes waiting for your credit scores to go back up can cost you money. Until your fica scores rise, subprime mortgages can lower your monthly payments by consolidating credit card debt or fixing the rate with your existing adjustable rate loans. Nationwide provides a clear path to shop several subprime loan programs for home buying and refinancing from reputable lenders and brokers.

The State of Subprime Mortgage Markets

It’s no secret that the economy has been all over the map the last 15 to 20 years. With all of the U.S. debt and never-ending turmoil in the Middle East, I don’t expect that to change. Uncertainty is typically good for mortgage markets because it keeps rates low. Credit typically loosens as default drop and that usually coincides with an improving job market domestically. The good news is that some of the private money and non-prime sources have grown impatient waiting and it seems that there are a few groups rolling out new risky mortgage programs for buying and refinancing. That means people with credit problems or income documenting issues may see more opportunities to qualify for a subprime mortgage.

Dodd Frank Financial Reform Bill
Reading about the controversial Dodd-Frank Bill that was created to stem frauds and defaults in the mortgage industry.

Learn More About How to Avoid Predatory Lending in the New Millennium
The U.S. Dept. of Justice defines mortgage fraud and deceptive lending practices and then outlines several prevention measures to take.

Find Poor Credit Mortgage Programs

It seems that homeowners needing access to money never goes out of style. Today, people continue to refinance for the purpose of obtaining cash so they can consolidate their debts. That’s the most popular use of cash out funds, according to the participating subprime mortgage lenders. Especially the consumers stuck with low credit scores or past bankruptcies have been focusing on the subprime loan programs.

Did you know you may be able to significantly reduce your current interest rate as well as lower your monthly loan payment so that you can save thousands of dollars each year? We also offer subprime mortgage programs that are government insured. Frequently people that have past credit issues run into speed bumps and pot holes on the road to getting a mortgage approved. We have streamlined the research process so you only have to consider real offers from trusted subprime lenders and brokers.

Rate & Term Refinance

The rate and term option is simply when a homeowner revises their interest rate or term on their lien without increasing the amount borrowed for cash out or consolidating debt. In some cases you may be able to borrow up to 100% of the value of your home! FHA approves refinancing to borrowers that typically need a subprime home loan, but the rates are low. Before committing to a subprime mortgage with a higher interest rate, we suggest researching the government loan programs because the pricing is competitive and the fees associated are typically nominal.

Jumbo Mortgage or Non-Conforming Loans

These loans do not conform to the guidelines established by Fannie Mae or Freddie Mac or exceeds the conventional loan limit is called a Jumbo loan. These non-conforming loan amounts can go up to two million dollars. Unless you have good credit and some equity you may need a subprime mortgage company to refinance your jumbo loan. Did you know that we can match you with some of the only non-conforming lenders that provide sub-prime financing to borrowers with low ficos?

In a recent report, the HL Wholesale revealed new statistics that many subprime mortgages were actually performing better than in recent years. They indicated that there were less defaults and the delinquency rates had fallen as well. Read more about subprime lenders online.

This is not an advertisement for credit. See Privacy for Details. NationwideMortgages.net does not offer subprime mortgages, debt consolidation, consumer counseling, foreclosure prevention or any other loan relief assistance. Nothing on this web site contains an offer promise either to make a mortgage loan or that any participating lender will guarantee any subprime mortgage for any purpose or on any specific terms. Loans cannot be made online or be approved without an underwriter analyzing your credit score, debt to income ratio and combined loan to value.

2003-2016 and Beyond NationwideMortgages.net – All rights reserved. Note that program requirements and rates are subject to change on subprime mortgage loans.


How to Buy a Home With a Low or Zero Down Payment #mortgage #loan #calculators


#0 down mortgage

#

How to Buy a Home With a Low or Zero Down Payment

For most first-time home buyers, coming up with funds for a down payment is the biggest obstacle to homeownership. It s easy to see why: If you re paying rent and have other expenses and are saving for an emergency fund, retirement and perhaps college tuition for your children, amassing thousands for a down payment can be tough.

Most financial planners recommend making a down payment of 20 percent, which comes to $39,600 on a $198,000 home, the national median price in December 2013, according to the National Association of REALTORS®. If you make a down payment of less than 20 percent, you will need to pay mortgage insurance .

However, before your lack of cash causes you to give up on your dream of homeownership, it s important to look for options other than the standard conventional loan with a 20 percent down payment.

Prior to the housing crisis, many lenders offered mortgages without any down payment. Some even allowed consumers to borrow up to 105 percent of the home s purchase price so they could finance their closing costs. The lack of equity in these homes became a crisis when home prices dropped and the owners owed more on their mortgage than the value of their home. Few lenders offer zero-down loans today, but there are some programs that allow consumers with good credit and a steady income to buy without making a down payment or with a minimal investment.

Government Zero-Down Programs

  • VA loans: Veteran s Affairs mortgage loans are available to veterans, current members of the military and their spouses. These loans don t require a down payment or mortgage insurance, although there is a funding fee that can be wrapped into the loan.
  • USDA Rural Development loans: Rural Development loans through the United States Department of Agriculture are available to buyers who meet credit and income requirements. You must be able to afford payments on the loan and yet have a low or moderate income. In addition, the property you are purchasing must be located within an area designated as eligible for these no-down-payment loans.
  • State and local homebuyer programs: Most states have programs to encourage homeownership. Generally these programs have income limitations and require you to take a home-buyer class. Find programs in your area on the National Council of State Housing Agencies website .

Low Down Payment Loans From Banks and Credit Unions

Please, Mr. Postman

Send me news, tips, and promos from realtor.com and Move.

Some banks and credit unions offer mortgage loans with no down payment requirement or a limited down payment. Typically, these loans are only available to borrowers who meet limited income requirements, such as a maximum of 80 percent of the median area income. You ll also need good credit and to be able to demonstrate your ability to repay the loan.

Down Payment Sources

If you re lucky enough to have family members with the means and generosity to give you money towards your home purchase, you can use some or all of their gift depending on your loan program. The Federal Housing Administration allows all of the required 3.5 percent down payment to come from gift funds. For a $198,000 purchase, you would need $6,930 for your down payment.

Conventional lenders require a minimum of 5 percent for a down payment, or $9,900 for a median-priced home. None of that 5 percent can come from gift funds, although if you make a larger down payment of 20 percent, all of it can be from a gift.

You can also borrow from your retirement funds for a down payment, but be sure you follow the rules exactly so you don t get hit with a tax penalty.

Saving for a down payment is an important step in becoming financially prepared for homeownership, but you should also arrange a free consultation with a lender to discuss your options and opportunities for financing a home purchase with a lower down payment.

Michele Lerner writes about real estate, personal finance, and business news. She is the author of two books about home buying. She also enjoys writing fiction, visiting art museums, and tutoring kids.


Mortgage Tables – Calculating Payments or the Interest Rate from a Mortgage Table #mortgage #interest


#mortgage payment table

#

Mortgage Tables

Copyright 2009 by Morris Rosenthal

All Rights Reserved

Calculating Payments or the Interest Rate from a Mortgage Table

We mentioned earlier that before computers, bankers used to use mortgage tables to calculate monthly payments. I’ve included a complete set of tables (interest rate 0% to 20% in 0.05% increments) for determining the payment per $1,000 of principal in Appendix B of version 1.2 of my mortgage math ebook. You sometimes see abbreviated versions of these mortgage tables with values per $1000 of principal in real estate magazines, to help you determine how much house you can afford. What makes it possible to reduce a fairly complex calculation to a simple table is that the complex part remains constant for a given interest rate and number of months. In other words, you only have to compute the big mess once to figure out the relationship between the amount of the mortgage principal and the monthly payment for a particular interest rate on a fixed rate mortgage. So referring back to our mortgage formula again, imagine that the messy part of the equation was replaced with a value from a table, so the equation now reads:

M = P [value from table] / 1,000

Where the value from the table is our familiar mess:

Value from table = [ i(1 + i)n ] / [ (1 + i)n – 1]

So how many interest rates should be calculated for a useful table? Since the calculation of a monthly payment based on the principal you do yourself doesn’t include the various fees and charges that show up at closing, there’s no point in trying to be super accurate when estimating your expenses. We carried the calculation out to enough significant digits that it should be within a penny on mortgages up to one million dollars, but that doesn’t mean you have to keep all the digits yourself when trying to get a ballpark figure for affordability.

The table on the following page can be used to estimate your monthly payment, per thousand dollars of loan mortgage principal, for interest rates between 4.00% and 5.95%. We put fifteen year and thirty year mortgages in the same table for in case you want to print and keep a copy in your wallet or on the fridge while you’re house shopping.

Since the table was prepared filled in hand, let’s check the accuracy against some of the mortgage calculations we’ve made previously. Our first mortgage calculation was for a $100,000 fifteen year mortgage at 5%, and the monthly payment came out to $790.79. Using the formula

M = P [value from table] / 1,000

= $100,000 (7.90794) / 1,0000

Where the 4/100 of a penny is more accuracy than we need.

For our $187,000 thirty year mortgage at 5.5%, we computed the payment as $1081.77, and the table formula gives:

= $187,000 (5.67789) / 1,000

We could have save the “divide by 1,000” step at this stage by filling the mortgage table with number that were already divided by 1,000, but you can do that yourself before calculating by just moving the decimal place three places to the left, since,

5.67789 / 1,000 = 0.0056789

and so on. Despite being highly competitive, mortgage are generally quoted in 5/100 increments, as those used in the table. But if you wanted to determine the monthly payment on a $187,000 thirty year mortgage at 5.53%, you can come very close by interpolation. For example, the closest interest rate in the table below 5.53% is 5.50%, for which we’ve already calculated the monthly payment to be $1061.77. The closest interest rate above 5.53% is 5.55%, for which the payment works out to:

=187,000 (5.70930) / 1,000

We can use the formula for linear interpolation with a fixed rate mortgage when the bracketing interest rates are so close together, since the error will be small. The formula, which looks worse than it is, gives:

M = Mlow + (i – ilow) (Mhigh – Mlow) / (ihigh – ilow)

Where the low refers to the lower interest rate and payment, and high refers to the higher. Sticking our numbers in the formula give

= $1061.77 + ( 5.53 – 5.50) ($1067.64 – $1061.77) / (5.55 – 5.50)

= $1061.77 + (0.03) ($5.97) / (0.05)

Now let’s compute the monthly payment for the same mortgage at 5.5%:

i = 5.53% / # months per year

(1 + i)n = (1+ 0.0046083)360

Replacing the (1 + i)n in our formula with 5.2340 we get:

M = P [ i (5.2340)] / [5.2340 – 1] or

= P [0.0046083 x 5.2340] / 4.2340

= P [0.024120] / 4.2340

And on our $187,000 loan at 5.53%, the payment would be:

So our interpolated answer using values from the mortgage table, $1065.35, came out seven cents ($0.07) per month too low, because the compound interest formula isn’t a linear function, but the estimate is more than good enough for determining what you can afford.


Subprime Mortgage Loans- Buy or Refinance with Bad Credit #cenlar #mortgage


#subprime mortgages

#

SubPrime Mortgage Loans

Buy or Refinance with Bad Credit

As more people have seen their fico scores drop our sub-prime lenders have introduced new mortgages for people with poor credit scores, late payments and more. In most cases, people need a “subprime mortgage” when they have lack of equity low credit scores or difficulties documenting their income. For the first time since the program’s inception, rates on loans for people with low credit scores have fallen to a never-before seen level for qualified borrowers. And unlike most high risk lenders, we refer you to companies that do not charge pre-payment penalties when our customers want to refinance.

Compare Lender Quotes on Subprime Mortgage Loans for Refinancing or Purchasing

People that need a second chance loan will benefit from new opportunities from multiple lenders. Talking to subprime lenders and comparing offers are your next steps.

Learn more about sub-prime mortgage loans for refinancing adjustable rates, bill consolidating, lowering monthly payments and cleaning up bad credit. If your credit scores have fallen recently, a subprime loan or 2nd mortgage may be the perfect interim loan until your credit rebounds.

Sometimes waiting for your credit scores to go back up can cost you money. Until your fica scores rise, subprime mortgages can lower your monthly payments by consolidating credit card debt or fixing the rate with your existing adjustable rate loans. Nationwide provides a clear path to shop several subprime loan programs for home buying and refinancing from reputable lenders and brokers.

The State of Subprime Mortgage Markets

It’s no secret that the economy has been all over the map the last 15 to 20 years. With all of the U.S. debt and never-ending turmoil in the Middle East, I don’t expect that to change. Uncertainty is typically good for mortgage markets because it keeps rates low. Credit typically loosens as default drop and that usually coincides with an improving job market domestically. The good news is that some of the private money and non-prime sources have grown impatient waiting and it seems that there are a few groups rolling out new risky mortgage programs for buying and refinancing. That means people with credit problems or income documenting issues may see more opportunities to qualify for a subprime mortgage.

Dodd Frank Financial Reform Bill
Reading about the controversial Dodd-Frank Bill that was created to stem frauds and defaults in the mortgage industry.

Learn More About How to Avoid Predatory Lending in the New Millennium
The U.S. Dept. of Justice defines mortgage fraud and deceptive lending practices and then outlines several prevention measures to take.

Find Poor Credit Mortgage Programs

It seems that homeowners needing access to money never goes out of style. Today, people continue to refinance for the purpose of obtaining cash so they can consolidate their debts. That’s the most popular use of cash out funds, according to the participating subprime mortgage lenders. Especially the consumers stuck with low credit scores or past bankruptcies have been focusing on the subprime loan programs.

Did you know you may be able to significantly reduce your current interest rate as well as lower your monthly loan payment so that you can save thousands of dollars each year? We also offer subprime mortgage programs that are government insured. Frequently people that have past credit issues run into speed bumps and pot holes on the road to getting a mortgage approved. We have streamlined the research process so you only have to consider real offers from trusted subprime lenders and brokers.

Rate & Term Refinance

The rate and term option is simply when a homeowner revises their interest rate or term on their lien without increasing the amount borrowed for cash out or consolidating debt. In some cases you may be able to borrow up to 100% of the value of your home! FHA approves refinancing to borrowers that typically need a subprime home loan, but the rates are low. Before committing to a subprime mortgage with a higher interest rate, we suggest researching the government loan programs because the pricing is competitive and the fees associated are typically nominal.

Jumbo Mortgage or Non-Conforming Loans

These loans do not conform to the guidelines established by Fannie Mae or Freddie Mac or exceeds the conventional loan limit is called a Jumbo loan. These non-conforming loan amounts can go up to two million dollars. Unless you have good credit and some equity you may need a subprime mortgage company to refinance your jumbo loan. Did you know that we can match you with some of the only non-conforming lenders that provide sub-prime financing to borrowers with low ficos?

In a recent report, the HL Wholesale revealed new statistics that many subprime mortgages were actually performing better than in recent years. They indicated that there were less defaults and the delinquency rates had fallen as well. Read more about subprime lenders online.

This is not an advertisement for credit. See Privacy for Details. NationwideMortgages.net does not offer subprime mortgages, debt consolidation, consumer counseling, foreclosure prevention or any other loan relief assistance. Nothing on this web site contains an offer promise either to make a mortgage loan or that any participating lender will guarantee any subprime mortgage for any purpose or on any specific terms. Loans cannot be made online or be approved without an underwriter analyzing your credit score, debt to income ratio and combined loan to value.

2003-2016 and Beyond NationwideMortgages.net – All rights reserved. Note that program requirements and rates are subject to change on subprime mortgage loans.


Commercial Properties – Real Estate For Sale or lease from Coldwell Banker Commercial #mortgage #closing


#coldwell banker mortgage

#

The CRE industry has benefited greatly in recent years from the work of tech startups that focus on supporting it. Industry professionals are more efficient, informed, and better able to recognize and act on opportunity than ever, thanks to CRE platforms and apps.

Coldwell Banker Commercial is honored to have a large team of affiliates representing the CBC name all across the nation. Whether helping their clients with their commercial real estate needs or sharing hyper local information on their specialized areas of service, these Coldwell Banker Commercial firms are making a splash on social media and bringing the best of commercial real estate news to their spheres.

College towns are a breed apart, and they can present unique investment opportunities when some key factors are aligned. In some of these markets, rental yields can be as high as 14%, so they re a smart choice for investors. The demographics in a college town help create this favorable environment for rental property. There are several major advantages to owning rental property in college towns.


Mortgage Tables – Calculating Payments or the Interest Rate from a Mortgage Table #business #mortgage


#mortgage payment table

#

Mortgage Tables

Copyright 2009 by Morris Rosenthal

All Rights Reserved

Calculating Payments or the Interest Rate from a Mortgage Table

We mentioned earlier that before computers, bankers used to use mortgage tables to calculate monthly payments. I’ve included a complete set of tables (interest rate 0% to 20% in 0.05% increments) for determining the payment per $1,000 of principal in Appendix B of version 1.2 of my mortgage math ebook. You sometimes see abbreviated versions of these mortgage tables with values per $1000 of principal in real estate magazines, to help you determine how much house you can afford. What makes it possible to reduce a fairly complex calculation to a simple table is that the complex part remains constant for a given interest rate and number of months. In other words, you only have to compute the big mess once to figure out the relationship between the amount of the mortgage principal and the monthly payment for a particular interest rate on a fixed rate mortgage. So referring back to our mortgage formula again, imagine that the messy part of the equation was replaced with a value from a table, so the equation now reads:

M = P [value from table] / 1,000

Where the value from the table is our familiar mess:

Value from table = [ i(1 + i)n ] / [ (1 + i)n – 1]

So how many interest rates should be calculated for a useful table? Since the calculation of a monthly payment based on the principal you do yourself doesn’t include the various fees and charges that show up at closing, there’s no point in trying to be super accurate when estimating your expenses. We carried the calculation out to enough significant digits that it should be within a penny on mortgages up to one million dollars, but that doesn’t mean you have to keep all the digits yourself when trying to get a ballpark figure for affordability.

The table on the following page can be used to estimate your monthly payment, per thousand dollars of loan mortgage principal, for interest rates between 4.00% and 5.95%. We put fifteen year and thirty year mortgages in the same table for in case you want to print and keep a copy in your wallet or on the fridge while you’re house shopping.

Since the table was prepared filled in hand, let’s check the accuracy against some of the mortgage calculations we’ve made previously. Our first mortgage calculation was for a $100,000 fifteen year mortgage at 5%, and the monthly payment came out to $790.79. Using the formula

M = P [value from table] / 1,000

= $100,000 (7.90794) / 1,0000

Where the 4/100 of a penny is more accuracy than we need.

For our $187,000 thirty year mortgage at 5.5%, we computed the payment as $1081.77, and the table formula gives:

= $187,000 (5.67789) / 1,000

We could have save the “divide by 1,000” step at this stage by filling the mortgage table with number that were already divided by 1,000, but you can do that yourself before calculating by just moving the decimal place three places to the left, since,

5.67789 / 1,000 = 0.0056789

and so on. Despite being highly competitive, mortgage are generally quoted in 5/100 increments, as those used in the table. But if you wanted to determine the monthly payment on a $187,000 thirty year mortgage at 5.53%, you can come very close by interpolation. For example, the closest interest rate in the table below 5.53% is 5.50%, for which we’ve already calculated the monthly payment to be $1061.77. The closest interest rate above 5.53% is 5.55%, for which the payment works out to:

=187,000 (5.70930) / 1,000

We can use the formula for linear interpolation with a fixed rate mortgage when the bracketing interest rates are so close together, since the error will be small. The formula, which looks worse than it is, gives:

M = Mlow + (i – ilow) (Mhigh – Mlow) / (ihigh – ilow)

Where the low refers to the lower interest rate and payment, and high refers to the higher. Sticking our numbers in the formula give

= $1061.77 + ( 5.53 – 5.50) ($1067.64 – $1061.77) / (5.55 – 5.50)

= $1061.77 + (0.03) ($5.97) / (0.05)

Now let’s compute the monthly payment for the same mortgage at 5.5%:

i = 5.53% / # months per year

(1 + i)n = (1+ 0.0046083)360

Replacing the (1 + i)n in our formula with 5.2340 we get:

M = P [ i (5.2340)] / [5.2340 – 1] or

= P [0.0046083 x 5.2340] / 4.2340

= P [0.024120] / 4.2340

And on our $187,000 loan at 5.53%, the payment would be:

So our interpolated answer using values from the mortgage table, $1065.35, came out seven cents ($0.07) per month too low, because the compound interest formula isn’t a linear function, but the estimate is more than good enough for determining what you can afford.


Should you go for a Fixed or Variable Rate Mortgage? #mortgage #payment #calculator


#variable rate mortgage

#

Contact moneysupermarket.com at Moneysupermarket House, St David’s Park, Ewloe, Flintshire, CH5 3UZ. Moneysupermarket.com Ltd 2013

Moneysupermarket.com Limited is an appointed representative of Moneysupermarket.com Financial Group Limited, which is authorised and regulated by the Financial Conduct Authority (FCA FRN 303190). Moneysupermarket.com Financial Group Limited, registered in England No. 3157344. Registered Office: Moneysupermarket House, St. David’s Park, Ewloe, CH5 3UZ. Telephone 01244 665700

Cookie Use

MoneySupermarket uses cookies, small text files which are downloaded to your computer’s hard drive when you visit most websites.

Cookies are harmless files which can help improve the experience. Cookies allow websites to respond to you as an individual. The website can tailor its operations to your needs, likes and dislikes by gathering and remembering information about your preferences.

By accepting cookies, MoneySupermarket is able to provide you with a better service and customise your experience with us.

Read more


What Is an Islamic Mortgage or No Riba Mortgage? #mortgage #rates #forecast


#islamic mortgage

#

Islamic Mortgage

By Huda. Islam Expert

Updated July 21, 2016.

Many Muslims, especially those living in non-Muslim countries, give up on the idea of ever owning their own home. Many families choose to rent for the long-term rather than participate in a bank loan which involves the taking or paying of interest. In recent years, however, the market has opened up to Islamic, or no riba . mortgage offerings which are compliant with Islamic law .

What Does Islamic Law Say?

The Qur an is very clear about the prohibition against usury-based business transactions (riba ):

Continue Reading Below

Those who devour usury cannot stand. That is because they say, trade is only like usury; yet Allah has allowed trade and forbidden usury. Allah does not bless usury, and He causes charitable deeds to prosper, and Allah does not love any ungrateful sinner. Oh you who believe! Be careful of your duty to Allah and relinquish what remains due from usury, if you are believers. If the debtor is in difficulty, grant him time until it is easy for him to repay. But if you remit it by way of charity, that is best for you if you only knew. Qur an 2:275-280

O you who believe! Do not devour usury, making it double and redouble, and be careful of (your duty to) Allah, that you may be successful. Qur an 3:130

In addition, the Prophet Muhammad is said to have cursed the consumer of interest, the one who pays it to others, the witnesses to such a contract, and the one who records it in writing.

The Islamic judicial system is committed to fairness and equity among all parties. The fundamental belief is that interest-based transactions are inherently unfair, giving a guaranteed return to the lender without any guarantees for the borrower.

Continue Reading Below

The basic principle of Islamic banking is the sharing of risk, with shared responsibility for profit and loss.

What Are the Islamic Alternatives?

Modern banks usually offer Islamic financing of two main types: murabahah (cost plus) or ijarah (leasing).

Murabahah: In this type of transaction, the bank purchases the property and then re-sells it to the buyer at a fixed profit. The property is registered in the buyer s name from the beginning, and the buyer makes installment payments to the bank. All costs are fixed at the time of the contract, with the agreement of both parties, so no late payment penalties are permitted. Banks usually ask for strict collateral or a high down payment in order to protect against default.

Ijarah: This type of transaction is similar to real estate leasing or rent-to-own contracts. The bank purchases the property and retains ownership, while the buyer makes installment payments. When payments are complete, the buyer gains 100% ownership of the property.

8 Integral Rules of Business and Economics in Islam


Mortgages For People with Bad Credit Rating or Adverse Credit History #government #mortgage #help


#poor credit mortgage

#

Get a mortgage with a bad credit rating

The number of lenders who provide remortgages and mortgages for people with credit problems is limited. There are just a handful of lenders who will help people with CCJs, defaults, mortgage arrears, discharged bankrupts and individuals with a poor credit score or bad credit rating.

The adverse, sub-prime or bad credit mortgage industry as it�s often known has certainly come out of the shadows in the last few years. A decade ago it was a byword for unscrupulous brokers charging high fees and lenders bending over backwards with tantalising offers. Before the credit crunch in 2007 there was a broad range of competitively priced products, less punitive and more innovative in terms of deals. However, in the past few years the market has changed and lenders have become increasingly wary about lending to people with less than perfect credit history.

Having a poor credit rating can be a deflating and traumatic experience, whatever the reason. But there may be deals out there for you. Specialist lenders offer what are known as credit repair deals. Here, you will have to pay a higher interest rate than you would with a conventional deal and put down a sizeable deposit. However, once you have maintained your payments on one of these deals for a sufficient period (usually about three years) your credit history may be in a better position to remortgage back on to a high street deal and reap the benefits of more competitive rates.

People often find it useful to contact a mortgage broker who has experience in the area of adverse credit lending and non standard mortgages. You can do this by simply completing the no obligation contact form on this website. There are a few specialist lenders out there and they get most of their business through brokers.

A truly independent broker will look at your individual circumstances and find the best mortgage for you. They may be able to help you find a mortgage even if you have been turned down elsewhere.

Each enquiry will be dealt with by an experienced advisor in a constructive and sympathetic manner. Even if you have County Court Judgements, credit card defaults, loan defaults, mortgage or rent arrears, bankruptcy, IVA, are self-employed or have difficulty proving your income, there may be suitable products available for you.

Just get in touch with a broker, tell the broker about your situation, and let them do the hard work.

Contact us for a free mortgage quote