Refinancing to reduce interest : refinancing to reduce the interest on mortgage

Fatawa Question

Assalamu Alaykum Wa Rahmatu Allah Wa Barakatuh. After reading from several Islamic sources that it was permissible, and praying Istakhara, my wife and I purchased a house 2 years ago with a 30 year mortgage. al-Hamdulillah in the first year we were able to payoff 5 years of the mortgage. We are now in the process of re-financing at a lower interest rate and for 15 years with the intention of paying off the debt as quickly as possible. Despite this we still have the question about whether this is permissible, Islamically ?

Fatwa

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Publication Date

2003-01-13

Main Subjects

Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Refinancing
• Usury
• Subprime mortgage

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-725607

• APA
• MLA
• AMA