Your ijara mortgage and interest rates.

Although you’ve got an ijara mortgage and that means you’re Sharia compliant and safely tucked away from riba, there are some other areas where understanding how mortgage rates work is a good idea for even those people that have ijara financing loans. For example, an adjustable rate mortgage takes advantage of lower interest rates in the sense that as the rates fall, the trust will be able to make bigger dents in the amount that you need to pay back to the lending institution. The advantage here lies in the fact that you can save as the rates drop but can find yourself paying more as the rates go back up again. Other people with an ijara mortgage feel better with a fixed rate. Like the name implies, the difference here is that the mortgage rate doesn’t move up and down with the market and in fact stays the same through the term. The advantage here for an ijara mortgage is in the fact that there is more predictability with the fixed rate—the rates don’t move and so there are no fluctuations. Of course when you have an ijara mortgage you don’t need to concern yourself directly with this part of the process,