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Important Reminders for Mortgage Loan Borrowers and Refinances
PROBLEM 1-For devout Muslims the Problem: Islam considers lending with interest payments as an exploitative practice that favors the lender at the expense of the borrower. Sharia law prohibits mortgage and other conventional loans because of the prohibitions on interest and unequally shared risk.
Similar Rules Apply to Those of Jewish Faith. There is a similar Jewish law that prohibits Jewish individuals from charging interest to other Jews.
SOLUSION 1- Shariah compliance is one of the major challenges facing Muslims and Islamic institutions. In the securitization of assets, Islamic financial institutions initiate separate special purpose vehicles in order to indirectly engage in interest-based transactions.
The Islamic financing model has found that one solution is to use a trust to avoid paying interest on money borrowed directly. In this process, an individual trust takes ownership of the property and the technique is called “Lease to Buy” (Ijara wa Iqtina).
A configuring essentially changes the nature of the transaction from a rent-on-money transaction (Riba) to buy-sell or rent-on-property (murabaha or Ijara-leaseback) transaction. We provide of configuring for conversational mortgage-holders that are already happy with their rates and terms of their currently mortgage, but just want to convert it to be sharia-compliant.
We can structure not only the Mortgage loans you have previously received, but also your new Mortgage financings in this model.
You can choose the mortgage lender or bank with the most suitable terms for you.
In the Our Beneficial Financing Model, Ijara-wa-Iqtina (lease and ownership) process allows Muslims to create a rent-to-own agreement in which the home’s inhabitant becomes a renter, thus abiding by Sharia principles.
Our Configuration process is asset-based rather than credit-based Islamic financing method that has been used in the U.S. and Canada for more than 20 years. Similar to conventional auto leases, the Ijara loan sets up a lessor-lessee relationship rather than a creditor-debtor relationship.
you can review for detail DEVELOPING ALTERNATIVE FINANCIAL INSTRUMENTS WITH CONFIGURING – Global Finance Platform
PROBLEM 2-Every time you make a mortgage payment, it’s split between your Principal – the amount of money you initially borrowed – and your interest. Most of your payment goes towards interest during the first few years of your loan. You owe less in interest as you pay down your Principal. At the end of your loan, a much larger percentage of your payment goes toward principal.
Let’s say you borrow $150,000 to buy a home at 4% interest with a 30-year term. By the time you pay off your loan, you will have paid a whopping $107,804.26 in interest!!! This is in addition to the $150,000 you initially borrowed.
SOLUSION 2-That if you pay every month toward a lease with the exact same term, with our Financial Planning-Leaseback model and special payment system.
You will have 118 months’ rental advantage in total. In other words, if you are going to pay 242 months of rent (20 years and 2 months), with the same amount of rent.
However, with the previous application, you will pay for 360 months-30 years.
For example, your monthly (Principal + interest) payment will be $608 x 118 Months = $71,744 for 9 years, 8 months’ advantage.
In short, you early start working with our model, the more you’ll save. This is mainly because mortgage payments are interest-heavy in the beginning of the term. If made soon after you take out your mortgage. Its value diminishes over time since less interest is due later in the loan term
Of course, the borrower who with our model won’t have to make payments the full 360 months because they’ll also wind up paying off their mortgage ahead of schedule.
Making an Extra Lease Payment Each Year
Some homeowners prefer to make an extra lease payment each year with Leaseback Configuring Model
Perhaps related to a tax refund check or from a year-end bonus at work
This is another good strategy to cut your lease term and save lots of money
And ensure that the bonus money you receive is put to good use as opposed to spent frivolously
You could also make one extra lump sum payment at the beginning of each year, perhaps after receiving your year-end bonus.
So let’s say you make a $1,000 bonus payment each year in January, starting in month 13.
That would save you $19.005.22 in lease and shave 85 months (just over 7 years) off your lease term.
Now let’s assume that you came upon some extra dough and want to make one lump sum payment to reduce your mortgage balance.
Using our same loan details from above, if you made a one-time extra payment of $5,000 to principal in month 13, you’d save $10,071.67 and reduce your loan term by 31 months.
Paying the lease with our model to own your home sooner is one benefit
But you’ll also save a ton on interest when your configuration of your home mortgage
So it’s actually a double win for very little effort
You will both return to the interest-free application and become a home owner sooner.
Where else are you going to save nearly $100k?
We are CONFIGURING the Mortgage program you CONTRACT WITH OTHER BANKS AND LENDERS before into the LEASING model.
You can reduce your 125% very high interest payments.
You can own (much more advantageous) a house with the LEASING MODEL.
You can get rid of early interest for at least 8-12 years.
The title deed of your house with the BENEFICIARY FINANCE MODEL and all your other assets will be registered with the Trust. You can add other assets to your Trust, save or change your will and your family share plan at any time.
You can evaluate your non-US assets in the US with our Programs.
You can also keep your children’s education loans and vehicle purchases in the Trust.
All transactions are carried out by lawyers according to US law rules.
Global Benefıcıal Fınancıng-GBF is your reliable source for Sharia-compliant financing options. Through our licensed providers, we offer Islamic funding solutions in the USA and other countries.
We take great pride in helping you get your dream home or commercial properties and investment and trade activities without having to worry about Riba- Interst
you can review for detail : DEVELOPING ALTERNATIVE FINANCIAL INSTRUMENTS WITH CONFIGURING – Global Finance Platform
We provide Financial Configuring services to the following groups.
* Former Mortgage Loan Borrowers,
* New Mortgage Borrowers,
* Persons Who Will Make Mortgage Refinance,
* Foreigners Requesting Mortgage in the USA,
* Commercial-Investment Loan Borrowers/Credit Persons,
* Those who want to protect and evaluate their assets,
* Those who want to transfer their claims to the USA
* Those who want to get rid of / reduce interest rates,
* Those who want to get rid of / reduce taxes,
* Investors /Partner/Fund Seekers for their Projects,
* Seeking Alternative Investment Opportunities Investment Institutions ,
* Seeking INTERNATIONAL FUNDS for Local Projects,
* Those Who Want to Restructure the E- TRADE INVESTİNG Financing Program,
* Foreigners who want to buy and lease real estate and other assets from the USA
* Those Who Want to Make an Escrow Transaction
* Those who use/will use Leasing Financing
* Those who use/will use Franchise Financing
* Those who use/will use Construction Finance
* Those who use/will use Vehicle Finance
* Those who use/will use Education Finance
you can review for detail: CONFIGURING – Global Finance Platform