interest

[SCARFACE]

Think about purchasing a house with 0% interest, and no pre-set late fees. You possess the property as long as you pay and you know that 100% of the monthly payments is going towards your loan. But acknowledging the fact that the bank will share 10% of the property with you. tell me what you think of this!

i came across this as I was conducting a research on a local islamic financing institution in saudi arabia which deals with this types of loans.

[ezapf]

Can you buy the bank's 10% at some time?

[Bangkok]

Under Sharia law, interest cannot be charged, so an alternative return for the lender needs to be established. 

[SCARFACE]

Yes, you can definately purchase the other 10% at any time as long as you the money.

Also, Banks profit from investements and trade they make & not from INTEREST.

[SCARFACE]

This shari'a system really appealed to me, Not to mention that you will never face  foreclosure and the bank will reimburse you for whatever you have on the house after they sell it. But you're required to put down at least 10% of the property's actual price.

[yummy]

Yes Scarface, I see where you're coming from. Another institution that deals with such loans has opened - the Islamic Bank of Britain. I think this system sounds great, although I haven't researched it in alot of detail. Anyway, the good thing is, the banks not just for Muslims, it's for anyone who finds the products appealing!