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.
Welcome to the Consumer Corner section of STM Daily News, your ultimate destination for savvy shopping and informed decision-making! Dive into a treasure trove of insights and reviews covering everything from the hottest toys that spark joy in your little ones to the latest electronic gadgets that simplify your life. Explore our comprehensive guides on stylish home furnishings, discover smart tips for buying a home or enhancing your living space with creative improvement ideas, and get the lowdown on the best cars through our detailed auto reviews. Whether you’re making a major purchase or simply seeking inspiration, the Consumer Corner is here to empower you every step of the way—unlock the keys to becoming a smarter consumer today!
home gardening
Beyond the Leaf Pile: 4 Tips for Autumn Lawn Care
4 Tips for Autumn Lawn Care: Many people associate fall yardwork with raking up the crispy, colorful leaves that have drifted down from surrounding trees. Don’t let that be the only task on your outdoor agenda, however, because this season is also an opportunity to improve the overall health of your lawn so it’s ready to thrive once spring arrives.
Beyond the Leaf Pile: 4 Tips for Autumn Lawn Care
(Feature Impact) Many people associate fall yardwork with raking up the crispy, colorful leaves that have drifted down from surrounding trees. Don’t let that be the only task on your outdoor agenda, however, because this season is also an opportunity to improve the overall health of your lawn so it’s ready to thrive once spring arrives.
Start with these autumn lawn care tips:
- Continue Mowing
As long as the grass keeps growing, homeowners should keep mowing – with a couple of smart seasonal adjustments. First, lower the mower height for your final two cuts so the grass isn’t too tall going into winter. Second, instead of raking all the leaves up beforehand, think about leaving a layer on the lawn so the mower can shred them and effectively turn them into mulch, returning their nutrients to the soil.
- Fertilize the Lawn
Especially if you grow cool-weather grass varieties like rye or fescue, feeding your lawn can actually be most effective in the fall. Fertilizer helps nourish the roots of your grass, strengthening it through the winter and preparing it to grow lush and green in the spring and summer. Aim to feed it once in the beginning of the season then again 6-8 weeks later or according to the recommended schedule for your region.
- Battle Stubborn Weeds
If you’ve been dealing with perennial weeds throughout the summer, fall could mean your chance to get rid of them once and for all. Weeds absorb herbicides readily on days with moderate temperatures and moist soil, so this task might be well-timed after some autumn rain has fallen.
- Add Grass Seed to Thin Spots
Whether you have bare patches on your lawn or areas of thinning grass, fall is the best time to seed cool-season lawns. (Skip this tip if you live in the South and have a warm-season lawn.) At least six weeks before the first hard frost in your area, spread grass seed over the areas you want to replenish or thicken then keep the lawn consistently watered until it germinates. Aerating the soil first can help the seed take root.
Find more seasonal home and garden tips by visiting eLivingtoday.com.
Photo courtesy of Unsplash
SOURCE:
Automotive
Hyundai Unveils All-New Tucson With Bold New Look, Smarter Hybrid Tech
Hyundai has unveiled the all-new Tucson, bringing bolder styling, a next-generation hybrid targeting up to 42 mpg, AI-powered infotainment and the rugged new XRT PRO.
Hyundai’s popular compact SUV gets a major makeover with a targeted 42 mpg hybrid, AI-powered infotainment and a more adventurous XRT PRO model.
Hyundai is preparing the Tucson for its next chapter, unveiling an all-new version of its popular SUV with a dramatically revised design, next-generation hybrid technology and a new digital experience built around artificial intelligence.
Hyundai Motor Company introduced the all-new Tucson in New York City against the Manhattan skyline, calling the redesigned model its “boldest SUV” yet.
For buyers, however, the bigger story may be what lies beneath the new styling. Hyundai is combining improved hybrid efficiency, more advanced infotainment and additional off-road capability in an effort to make the Tucson equally comfortable handling weekday commuting, family duty and weekend adventures.
A Bolder Tucson Takes Shape
The new Tucson adopts Hyundai’s “Art of Steel” design philosophy, giving the SUV a more muscular and purposeful appearance.
Rather than simply updating the outgoing Tucson, Hyundai appears to be pushing the model toward a stronger SUV identity while maintaining the everyday practicality that has helped make the Tucson one of the company’s most important global vehicles.
The new exterior is complemented by a redesigned cabin emphasizing space, storage and easier-to-use controls. Hyundai says the interior includes flexible storage solutions and available relaxation features designed to make longer trips more comfortable.
That combination could be important in a compact SUV segment where shoppers increasingly expect vehicles to serve several roles at once — commuter, family vehicle, road-trip machine and recreational vehicle.
Hybrid Targets Up to 42 MPG
One of the most significant changes is Hyundai’s Next-generation Hybrid System.
Hyundai says the new system is targeting fuel economy of up to 42 mpg, while also attempting to preserve responsive driving performance.
If that target carries through to production specifications and official fuel-economy testing, it could make the Tucson Hybrid particularly attractive to drivers who want SUV practicality without moving to a fully electric vehicle.
The strategy also reflects a broader automotive trend. Hybrids have increasingly become an important middle ground for consumers looking to reduce fuel consumption without changing their driving and charging habits.
Final EPA fuel-economy figures and U.S.-market specifications will ultimately determine how the new Tucson compares with its competitors.
Pleos Connect Brings AI Into the Cabin
Technology is another major focus of the redesign.
The Tucson introduces Hyundai’s Pleos Connect next-generation infotainment platform, which incorporates Gleo AI, an expanding app marketplace and a redesigned user interface.
Hyundai describes Pleos Connect as an evolving digital platform rather than simply a conventional infotainment system.
That could allow the Tucson’s capabilities to expand over time as software, applications and connected services develop.
The important question for drivers will be whether all that technology actually makes everyday tasks easier. Automakers continue adding increasingly sophisticated screens and software to their vehicles, but intuitive controls and minimal driver distraction remain just as important as the number of available features.
Tucson XRT PRO Heads Further Off the Pavement
Hyundai is also expanding the Tucson’s adventurous side with the introduction of the Tucson XRT PRO.
The more rugged model adds enhanced off-road technologies, including Hyundai’s first Smart Terrain Assist, or STA.
The system is designed to help the vehicle adapt to changing terrain and provide drivers with additional confidence when leaving paved roads.
The XRT PRO could broaden the Tucson’s appeal among buyers who like the practicality of a compact crossover but want more capability for camping, outdoor recreation and light off-road travel.
More detailed specifications will help determine just how far the XRT PRO moves beyond the appearance-oriented adventure packages commonly offered in the compact SUV market.
A Major Vehicle in Hyundai’s Bigger Product Push
The importance of the new Tucson extends beyond a single model.
“Millions of families around the world count on the Hyundai TUCSON, and this is the best one we have ever built,” Hyundai Motor Company President and CEO José Muñoz said during the announcement.
Muñoz also said the Tucson begins what Hyundai describes as the most ambitious product offensive in its history.
The automaker plans to introduce more than 100 new or refreshed vehicles globally by 2030, including 58 in North America.
That makes the Tucson something of an opening act for Hyundai’s next generation of vehicles.
The Tucson Enters Its Next Era
Compact SUVs remain some of the most versatile vehicles on the market, and Hyundai appears determined to keep the Tucson competitive by improving several areas simultaneously rather than relying on styling alone.
A targeted 42-mpg hybrid powertrain could appeal to fuel-conscious drivers. Pleos Connect and Gleo AI represent Hyundai’s push toward increasingly software-driven vehicles. Meanwhile, the new XRT PRO gives the Tucson lineup a more adventurous option.
There are still important details to come, including complete U.S. specifications, EPA-certified fuel economy, trim levels, pricing and availability.
But Hyundai’s message is already clear: the next Tucson is intended to be more than a routine redesign.
It is being positioned as a showcase for where Hyundai believes the modern SUV is headed — bolder in appearance, smarter inside and more efficient underneath.
Source: Hyundai Motor Company. Specifications and fuel-economy figures discussed by Hyundai are preliminary and may vary by market. Final U.S. specifications and EPA ratings may differ.
Sources & Related Links
- Hyundai Motor Company — Official All-New Tucson Announcement
Hyundai’s original newsroom announcement covering the redesign, next-generation hybrid system, Pleos Connect, Gleo AI and Tucson XRT PRO. Hyundai
Hyundai Motor: All-New Tucson Official Announcement - Hyundai — All-New Tucson Highlights
Official product page with more detail on the “Art of Steel” design, Pleos Connect, 17-inch display, app marketplace, hybrid technology and XRT PRO. Hyundai
Explore the All-New Tucson - Hyundai USA — Tucson
Hyundai’s U.S. consumer page for Tucson information, specifications, trims and future model updates.
Hyundai USA: Tucson - PR Newswire — All-New Hyundai Tucson Press Release
The syndicated release announcing the new Tucson and Hyundai’s target of up to 42 mpg for its next-generation hybrid system. PR Newswire
Read the Original PR Newswire Release - Car and Driver — 2027 Hyundai Tucson
Independent coverage with additional U.S.-market specifications, including powertrain, interior, cargo and XRT Pro information. Car and Driver
Car and Driver: 2027 Hyundai Tucson Details - Road & Track — 2027 Hyundai Tucson
Additional independent coverage of the Tucson redesign, hybrid powertrain, Pleos Connect and XRT Pro off-road features. Road & Track
Road & Track: New Hyundai Tucson Details
Lifestyle
7 Fire Prevention Tips to Protect Your Home and Community
7 Fire Prevention Tips: Fires can be devastating, but many of them are preventable with simple precautions and smart everyday choices. Consider these tips to reduce the risk of fires and keep your household, family and community safe.
7 Fire Prevention Tips to Protect Your Home and Community
(Feature Impact) In observance of National Fire Prevention Month, it’s a good time to review your fire safety habits at home and in your neighborhood. Fires can be devastating, but many of them are preventable with simple precautions and smart everyday choices.
Consider these tips to reduce the risk of fires and keep your household, family and community safe.
Test Your Smoke Alarms
Smoke detectors are one of the simplest yet most important tools for protecting your home, loudly alerting you to potential danger at any time of the day or night. Test them monthly, follow manufacturer’s instructions for replacement and change batteries as needed.
Heat Your Home Safely
Depending on how you heat your home, there can be different hazards to remain aware of. Never leave fireplaces unattended when in use and have them inspected and maintained as recommended by a trained professional. If you use portable heaters, keep them at least three feet away from curtains, bedding, furniture and other flammable materials.
Prevent Electrical Fires
Frayed cords, damaged outlets or overloaded appliances can pose real danger to your home when they overheat or spark. Particularly if you live in an older home or have outdated appliances, keep an eye out for warning signs like tripped circuit breakers, malfunctioning devices or the smell of burning. If you’re concerned, have your system inspected by a qualified electrician.
Store Flammable Objects Carefully
Keeping matches and lighters out of reach of children is always a smart first step for household fire safety. Also follow safe storage practices for items like lighter fluid, propane, aerosol cans and other household products that could potentially ignite when exposed to heat or a stray spark.
Practice Smart Kitchen and Grill Habits
From sparks flying off the grill to hot oil forgotten in the frying pan, cooking is the leading cause of household fires. Stay attentive in the kitchen, never leave cooking food unattended and avoid setting combustible materials like paper plates or fabric towels too close to a stove or grill. Also keep your appliances cleaned and well-maintained.
Plan Your Escape Route
Fires can spread quickly, which is why it’s important for everyone in your household to know the plan (and backup plan) for safely exiting different areas of the house during an emergency. Decide on a specific meeting place outside and practice quick fire drills together to build muscle memory.
Observe Local Fire Safety Rules
Where you live determines what kinds of fire risks affect your community, so make sure you stay informed about local regulations. For instance, areas prone to drought or wildfire may have rules about outdoor burning, and local fire prevention ordinances may outline specific requirements for smoke alarms in your home.
Find more home safety tips at eLivingtoday.com.
Photo courtesy of Shutterstock
SOURCE:
eLivingtoday.com
