I’ve been reading some recently about sharia-compliant home financing. I’m not Muslim, but from a economic point of view the idea of not paying interest sounds interesting.
Is someone able to explain how this process works?
Furthermore, what’s the short-term cost difference between such financing and more U.S. traditional 30-year fixed mortgage? What’s the long-term overall cost difference? What are other advantages and disadvantages of sharia lending?
I’m interested in answers that address the financial aspect of sharia. Please leave religion and theology out of your answer.