Quote:Take that over into a sharia-compliant loan, and you're underwater from day one through the final years of the loan. Because all the interest is figured up front into the principal, a bank would essentially be writing you a $350k loan for a $200k house. It's all principal, not just the value of the home. With that dynamic in play, the homeowner would never be able to sell the home because of the massive disparity between what they owe and what the house is worth, and refinancing would also be almost impossible. The refi lender would have to write the bank a check for far, far more than the house is worth to buy out the loan, and that's corporate suicide in the making. Based upon the problem of turning all the interest into principal, I now believe that sharia-compliant loans are impossible unless lenders are forced to fundamentally rethink how home mortgage loans are handled. I don't think that's time and money worth wasting, tbqh.