Updated: Jul 13, 2023
Many people hope to avoid leaving behind a debt burden after their passing. Yet, inadequate planning makes many individuals leave this world unsettled with financial obligations. Two hundred years ago, Benjamin Franklin wisely proclaimed, "Failing to plan is planning to fail," a statement that holds particular significance in the realm of financial planning. Our tool is designed to assist you in creating a comprehensive plan that allows you to achieve your goals while adhering to the principles of Islam. For Muslims, specific obligations exist concerning debt, interest, and overall financial matters, while difficult to find a Halal mortgage that truly aligns with Islamic ruling. Using our tool, you can ensure that your financial decisions align with Islamic principles and responsibly fulfill your obligations. We recognize the significance of preserving the integrity of your faith while planning for your financial future. The impact of financial planning extends beyond one's lifetime, yielding both direct and indirect consequences. The direct implications manifest throughout life, enabling individuals to make informed decisions, achieve financial stability, and experience a sense of security. However, the indirect impact holds even greater significance, transcending life itself. Inadequate financial planning can leave a lasting negative legacy, potentially causing hardships for loved ones left behind and ruining estate planning goals. Such repercussions can be emotionally and financially devastating. Our objective is to empower and inspire you to create the most effective financial plan that brings you personal satisfaction and long-term peace of mind. By leveraging our tool, you can gain the necessary awareness and guidance to navigate the complexities of financial planning while honoring your Islamic values. We aim to support you in establishing a plan that safeguards your financial well-being during your lifetime and ensures a smooth transition for your loved ones when you are no longer present. Remember, taking control of your financial future is a practical endeavor to uphold your religious beliefs and leave behind a positive legacy. Embrace the opportunity to make sound financial decisions that align with your Islamic principles and secure a prosperous future for yourself and your loved ones. Start planning today to achieve lasting peace and financial harmony.
This calculator is designed to help people plan effectively before purchasing a property to decide whether to buy a property with the mortgage or keep renting until adequate finances are built up. Look for Buy vs. Rent cost difference in the calculation summary, and if the rental expense is reasonable and affordable, then just rent the house until enough cash is available in the pocket for purchasing the home and vice-versa.
Currently, the "TO BORROW" and "PAY AFTER INCOME" amount is zero because the income of the Applicant (i.e., $50,000) and Co-Applicant income (i.e., $50,000) is adequate to cover the mortgage amount, assuming you enter other fields (i.e., Renting, House expenses, taxes, insurance, groceries, utilities, etc.) correctly reflect your finances. Try to reduce the Applicant's income to say "$45,000"; the "TO BORROW" and "PAY AFTER INCOME" will display some value, meaning your income is inadequate to cover the mortgage and expenses, and you cannot pay off a mortgage in 5 years. The amortization period is not displayed because the calculator has the default amortization period of "5 years".
To learn more, Observe the change by modifying a few values in the input field to learn about how does impact your selection vs. result. Enter all values except the last one where it says "ENTER FROM TO BORROW," you need to get into the value calculated in the first field on the top that says "TO BORROW" After entering, you will notice that the value under "TO BORROW" goes to zero, i.e., your home value equals borrowing. It is ultimately up to the user to effectively plan for borrowing and, at the same time, whether there is a possibility to borrow it all depending on the specific situation of person to person.
DISCLAIMER: We strive to offer users accurate information to the best of our knowledge. However, laws are subject to change; therefore, the user assumes full responsibility and should utilize the information on our website and this tool as a reference per our terms and conditions. If you believe any part of the calculation is incorrect or contains errors, we kindly request your feedback here.