Consumer Corner
What are halal mortgages?

Shariq Siddiqui, Indiana University
The growth of “halal mortgages” over the past 20 years has expanded financial access to homeownership for many Muslims. Halal mortgages provide interest-free loans in keeping with Islamic beliefs.
These mortgages are available in over 80 countries that have a significant Muslim population, such as Saudi Arabia, Iran, Malaysia, United Arab Emirates, Kuwait, Qatar, Turkey, Bahrain, Indonesia and Pakistan, where they account for the vast majority of the global US$3.9 trillion Islamic finance economy.
Access to halal mortgages has been growing in the United States. Until 1997, no financial institution was willing to offer halal mortgages, but in 2024, over 25 banks had made them available.
The Conversation asked Shariq Siddiqui, assistant professor and director of the Muslim Philanthropy Initiative at Indiana University, to explain halal mortgages.
What are halal mortgages?
Halal mortgages are a tool of Islamic finance and offer an equitable way to gain homeownership. They emphasize risk-sharing and mutual cooperation with the aim of checking unfair exploitation and wealth accumulation in the hands of a few. In such a system, money is a means of exchange rather than a commodity that generates profit.
What are the religious roots of Islamic finance?
The Muslim holy book, the Quran, and the sayings of the Prophet Muhammad, the Sunnah, prohibit riba, (interest), maisir (speculation) and gharar (uncertainty or uneven risk).
For example, the Quran says, “O you who believe, do not eat up the amounts acquired through ribā (interest), doubled and multiplied. Fear Allah, so that you may be successful.”
Over time, Muslims have sought to develop systems that adhere to these rules. These include bonds that do not receive interest but are based on profit-sharing; socially responsible mutual funds that comply with ethical rules; and insurance that provide protection through a communal fund.
Since World War II, however, monetary policies in the global financial market are largely based upon interest.
How does Islamic financing work in modern context?

In the modern context, Muslims use contract law for economic activity and offer home mortgages without interest. For example, as an attorney, I would develop mortgage contracts that would allow buyers and sellers to transact without interest. This “mortgage” contract would be recorded with the county.
Traditionally, there are three kinds of halal mortgages. In the first, known as ijara, the bank purchases the property and leases it to the homeowner; the homeowner pays rent, principal payments and bank charges; the buyer’s share in the home remains the same until the entire loan is paid off.
Diminishing musharaka is another type of joint ownership plan between the bank and the buyer. The buyer makes principal monthly payments and pays bank charges rather than interest. With each principal payment, the ownership of the buyer increases and the bank’s ownership decreases.
In the third type, murabaha, the bank purchases the home and resells it immediately to the buyer at a higher price – termed as profit. The buyer typically pays a 20% down payment. Thereafter, the buyer makes fixed interest-free payments until the loan is paid off.
What is the availability of halal mortgages in the US?
In 2001 and 2003, respectively, Freddie Mac and Fannie Mae started buying Islamic mortgage products to provide extra liquidity in the U.S. Islamic finance market. These government-backed housing giants work under the conservatorship of the Federal Housing Finance Agency and are one of the principal means of bolstering homeownership in the United States.
These mortgage buyers have grown to become the main investors in Islamic mortgages. For example, Freddie Mac has invested in Guidance Residential, one of the largest halal mortgage companies in the U.S.
What are the advantages?
These systems ensure that there is mutual risk-taking between the bank and the homebuyer. For example, should the homebuyer be unable to keep up payments, their prior principal payments are protected and not consumed by the interest. Furthermore, if the home loses value, both homebuyer and bank proportionally lose out on the principal value of the home.
They require greater transparency on costs, fees and responsibilities; both parties are required to work together and fulfill their obligations.
This reduces the risk of failures like the subprime lending crisis, when banks overvalued homes and financed mortgages that buyers could not afford, leading to a global recession in 2008.
What are the downsides?
Halal mortgages are more expensive and more difficult to enter into, as they require a down payment of at least 20%. Furthermore, they are not available in every state in the United States.
Additionally, many Muslims are unwilling to deposit their money in banks, if those banks are required to pay interest or earn part of their revenue based upon interest.
Shariq Siddiqui, Assistant Professor & Director of the Muslim Philanthropy Initiative, Indiana University
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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Consumer Corner
Make a Smart Home Investment with an All-Climate Heat Pump
All-climate heat pumps offer a modern alternative to traditional HVAC systems, providing personalized comfort, improved energy efficiency, and potential cost savings. Homeowners are increasingly considering these systems for better indoor climate control and reduced energy bills.

(Family Features) If your home uses a conventional heating and cooling system, you may wonder if there’s a better way to manage indoor comfort. Between rising energy costs and concerns about the efficiency of conventional systems, many homeowners are exploring alternatives. One popular solution is an all-climate heat pump.
All-climate heat pumps are the next generation of heat pump technology built for peak performance, regardless of the outdoor temperature. From the personalized comfort all-climate heat pumps deliver to the energy savings realized, it’s no wonder more homeowners are considering going all-in on all-climate.
If you’re considering replacing your current HVAC system, read on for some of the benefits of all-climate heat pumps.
Personalized Comfort
Ductless, multi-zone, all-climate heat pump systems are designed to deliver personalized, room-to-room temperature control tailored to your preferences. Unlike traditional ducted unitary systems, which typically operate on an all-or-nothing basis, ductless multi-zone solutions provide individualized climate settings for each space. Whether you prefer a warmer living room or a cooler bedroom, the flexibility to adjust each zone offers unparalleled convenience and energy efficiency.
Efficiency
According to a survey of U.S. homeowners commissioned by Mitsubishi Electric Trane HVAC US (METUS), 93% of homeowners surveyed with conventional HVAC systems reported concerns about utility bills. Seventy-five percent of those surveyed also consider energy efficiency always or often when considering home improvements.
Conventional heating and cooling systems run at full capacity to reach set point and then shut off. The start-stop action ultimately wastes energy. With variable-capacity capabilities and inverter-driven technology, all-climate heat pumps can adjust and maintain temperatures, lessening your home’s overall energy demand and driving down cost.
Cost Savings
The cost savings provided by efficient energy usage are evident. Additionally, some states offer rebates for new HVAC systems, and many contractors offer financing options, which make the upfront cost of an all-climate heat pump installation more affordable.
Reliability is another cost-saving factor. All-climate heat pumps are purpose-built with durable materials to perform well in all kinds of weather.
“We continue to educate homeowners about the advantages all-climate heat pumps have over conventional HVAC systems,” said Mark Kuntz, Chief Executive Officer, METUS. “As homeowners become more knowledgeable about the numerous benefits, including personalized comfort, energy efficiency and cost savings, we believe they will increasingly install these next-generation systems in their homes.”
Learn more about how you can better manage your home’s indoor comfort with all-climate heat pump technology by visiting mitsubishicomfort.com.
SOURCE:
Mitsubishi Electric
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Consumer Corner
Homeowners’ Handbook: Navigating new HVAC refrigerants

(Family Features) Homeowners may not realize it, but one compound impacts their lives nearly every day: refrigerant. Capable of transforming from liquid to gas and back again, it absorbs and transfers heat as a key part of air conditioning and heat pump systems that keep you comfortable no matter the weather.
As part of your air conditioner or heat pump system, it helps transfer heat and humidity out of your home for cooling or draws heat from outdoor air and brings it inside for heating. However, while concerns about climate change heat up, government leaders are enacting policies that enforce greater control over the anticipated global warming potential (GWP) of refrigerants.
In fact, the Environmental Protection Agency (EPA) is limiting the GWP of refrigerants in equipment starting in 2025. At the same time, the EPA is implementing a phasedown on the supply of existing, higher GWP refrigerants.
The changes include a phasedown of high-GWP refrigerants commonly used in home air conditioning and refrigeration, introduction of alternative refrigerants with lower GWP that maintain efficiency and requiring manufacturers to comply with new standards for energy efficiency and environmental impact.
Despite these policy updates, you may not necessarily need a new air conditioner or heat pump. Here’s what homeowners need to know, courtesy of the experts at Carrier, a world leader in high-technology heating, air conditioning and refrigeration solutions:
Environmental Awareness and the Impact on Existing Home Systems
Transitioning away from high-GWP refrigerants contributes positively toward reducing your carbon footprint. These anticipated changes aim not only at reducing environmental impact but also at promoting technological advancements in heating and cooling solutions that benefit both consumers and the planet over time. If you have an existing system using older refrigerants like R-22 or R-410A, it can still be serviced; however, it’s possible repair costs may increase due to reduced availability.
Maintenance and Servicing
Regular maintenance becomes more crucial as systems age. Ensure your HVAC technician is knowledgeable about the new requirements and safely handling different types of refrigerants.
Considerations for New Purchases
When purchasing a new air conditioner or heat pump, be sure to check for energy efficiency ratings that align with the updated regulations and look for models using low-GWP refrigerants. For example, Puron Advance from Carrier will replace existing refrigerants in all its residential ducted and ductless and light commercial products. This innovative refrigerant, also known as R-454B, not only meets the EPA’s anticipated GWP limits for refrigerants but exceeds the new requirements with a GWP of 466, a 75% reduction compared to R-410A.
Incentives and Rebates
If you’re shopping for a new air conditioner or heat pump, keep an eye out for government incentives or rebates aimed at encouraging homeowners to upgrade their systems in compliance with new standards.
Consult Professionals
Owning a home is a lot of work on its own, and EPA regulations on your cooling and heating systems may be the furthest thing from your mind. If you believe you’re due for service or a new system, engage HVAC professionals – like the trusted experts at Carrier – who are up to date on regulatory changes. Always check local regulations for specific details applicable in your area since policies can vary by region beyond federal guidelines.
To find more information on the changes or connect with an HVAC professional, visit Carrier.com/Residential.
SOURCE:
Carrier
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Consumer Corner
Bipartisan Legislation Reintroduced to Protect Utilities, Ratepayers from PFAS Costs
The Water Environment Federation supports the reintroduction of the Water Systems PFAS Liability Protection Act, ensuring PFAS producers cover cleanup costs, protecting water utilities and communities from financial burdens.
WASHINGTON /PRNewswire/ — The Water Environment Federation (WEF) has expressed strong support for the reintroduction of the Water Systems PFAS Liability Protection Act. This bipartisan legislation, led by Reps. Marie Gluesenkamp Perez (D-WA) and Celeste Maloy (R-UT), aims to protect water utilities from undue financial burdens associated with per- and polyfluoroalkyl substances (PFAS) cleanup under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). The bill ensures that PFAS producers, rather than the public, bear the cost of remediation.
“Water utilities and their customers should not be forced to pay remediation costs for issues they did not create,” said Ralph Exton, WEF’s Executive Director. “We applaud Representatives Gluesenkamp Perez and Maloy for their leadership in championing this critical legislation.”
The reintroduction of this legislation follows the Environmental Protection Agency’s (EPA) designation of PFOA and PFOS – two PFAS chemicals – as hazardous substances under CERCLA. This designation compels water utilities nationwide to remove these chemicals from drinking water, a process that involves significant financial costs.
By classifying PFOA and PFOS as hazardous substances, the EPA’s designation leaves water and wastewater utilities vulnerable to potential lawsuits from PFAS manufacturers. These entities may attempt to shift financial responsibility onto utilities through litigation, increasing operational costs that ultimately affect ratepayers.
“The Water Systems PFAS Liability Protection Act is a crucial step in ensuring that water and wastewater utilities — and, ultimately, the communities and ratepayers they serve — are not unfairly burdened with the costs of PFAS contamination cleanup,” said Exton. “These utilities are involuntary receivers of PFAS and did not create or profit from PFAS. However, without congressional action, they could be forced to bear immense financial and operational challenges.”
This legislation is necessary to protect utilities after their systems have been involuntarily affected by PFAS, but source control at the industrial and residential levels is a more efficient and cost-effective solution. The Minnesota Pollution Control Agency found that PFAS can be bought for $50 – $1,000 per pound. However, it costs between $2.7M and $18M per pound to remove or destroy from municipal systems depending on facility size.
Originally introduced in the previous Congress by Rep. John Curtis (R-UT), the bill received broad bipartisan support and remains an essential step toward ensuring fair and just accountability for PFAS contamination.
About WEF
The Water Environment Federation (WEF) is a not-for-profit technical and educational organization of more than 30,000 individual members and 75 affiliated Member Associations representing water quality professionals around the world. Established in 1928, WEF’s mission is to inspire the water community in pursuit of human and environmental well-being. WEF’s goals are to attract and develop a passionate workforce, cultivate a purpose-driven community to sustainably solve water challenges for all, and lead the transformation to the circular water economy.
SOURCE Water Environment Federation
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