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Democratically controlled Minnesota has allowed Muslims to not have to pay interest on their mortgages as it conflicts with their religion.
(Source: Minn. Public Radio.)
Democratically controlled Minnesota has allowed Muslims to not have to pay interest on their mortgages as it conflicts with their religion.
(Source: Minn. Public Radio.)
Seektruth, facts just aren't your thing, are they? Because it's on public radio in Minnesota, does not mean the story came from Minnesota. Also, there is no legislation involved. It's a contract between people who agree to the terms. Sounds like capitalism to me.
"How do you buy a house when your religion bars you from paying interest? Tess Vigeland visited the Zerroug family to learn how they structured the purchase of their Pasadena, Calif., home."
"So Abdul-Rahman devised a way to finance mortgages without charging interest. It's essentially a lease-to-own, but you take title on the house. To determine your repayment, you and the bank get estimates from six different realtors about what the house is worth as a rental, then you negotiate a monthly payment based on those figures. The bank makes its money off part of that payment."
Marketplace: Muslim mortgages (http://marketplace.publicradio.org/display/web/2008/03/07/meaw_money_muslim_mortgages/ - broken link)
Edit: Oops. Wrong story, I guess. California does it a different way.
Seektruth, facts just aren't your thing, are they? Because it's on public radio in Minnesota, does not mean the story came from Minnesota. Also, there is no legislation involved. It's a contract between people who agree to the terms. Sounds like capitalism to me.
"How do you buy a house when your religion bars you from paying interest? Tess Vigeland visited the Zerroug family to learn how they structured the purchase of their Pasadena, Calif., home."
"So Abdul-Rahman devised a way to finance mortgages without charging interest. It's essentially a lease-to-own, but you take title on the house. To determine your repayment, you and the bank get estimates from six different realtors about what the house is worth as a rental, then you negotiate a monthly payment based on those figures. The bank makes its money off part of that payment."
Marketplace: Muslim mortgages (http://marketplace.publicradio.org/display/web/2008/03/07/meaw_money_muslim_mortgages/ - broken link)
So the Muslims still have to pay back an amount far greater than the loan amount? But they simply are calling it a "lease payment" rather than "interest"?
Hey, if it fools the ignorant, what's the problem?
Nice non posting of a link again. This is getting ridiculous.
They pay the interest up front by paying a higher amount for the house
Quote:
The deal is identical to a thirty-year fixed-rate loan, except there's no additional interest, because the higher up front price factors in payments that would have been made over the life of a traditional mortgage.
Democratically controlled Minnesota has allowed Muslims to not have to pay interest on their mortgages as it conflicts with their religion.
(Source: Minn. Public Radio.)
Anyone can get such mortgage. No need to be a Muslim, although it was designed for them, because otherwise the bank would not be able to sell them a mortgage at all. They simply add the interest to the principle, and then everyone is happy, including allah.
So the Muslims still have to pay back an amount far greater than the loan amount? But they simply are calling it a "lease payment" rather than "interest"?
Hey, if it fools the ignorant, what's the problem?
In the story the OP was referring to, the buyers agree to pay more than what the house is worth. It's just fudging the numbers so that technically "no interest" is paid. In the California case, it's a "lease-to-own." It just seems like semantics to save face in the eyes of their religion.
"The deal is identical to a thirty-year fixed-rate loan, except there's no additional interest, because the higher up front price factors in payments that would have been made over the life of a traditional mortgage."
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California does it a different way.
