Ijara loans and slashing your mortgage costs.

Your Ijara loans are very different in some ways than a traditional Western style mortgage but in other ways these two types are very much the same. There are some things that you can do with an ijara mortgage that will help you keep your costs down even though you’re not paying interest in the usual way. For example, you can take a short-term variable-rate mortgage if you’re the adventuresome type who can keep an eye on interest rates.

Remember if your cash flow is strong and your job is secure you can save thousands of dollars in interest payments by reducing your amortization schedule from the traditional 25 years down to fifteen. Whether you have a traditional Western style mortgage or ijara loans, when you renew your mortgage making a lump sum pay to reduce the principle is another good idea. Many financial institutions allow you to pay extra cash against your ijara mortgage by doubling your mortgage payments once a year, adding an extra monthly mortgage payment every year or even putting in a lump sum payment annually.