Intercontinentalcapital.com Review

Based on looking at the website, IntercontinentalCapital.com appears to be a mortgage lending company offering an entirely digital experience to simplify the mortgage process. While their stated goal is to provide competitive rates with reduced fees, it is important to note that mortgage loans, by their very nature, typically involve interest riba, which is strictly forbidden in Islam. This makes IntercontinentalCapital.com, and conventional mortgage services in general, impermissible from an Islamic perspective. The platform emphasizes cost savings and convenience, but these benefits do not negate the fundamental issue of interest-based transactions.

Here’s an overall review summary:

• Service Type: Digital Mortgage Lending
• Key Promise: Low rates, half the fees compared to traditional banks, simplified process.
• Operational Model: Online, dedicated U.S.-based mortgage brokers.
• Islamic Compliance: Not permissible due to involvement in interest riba.
• Transparency: Provides NMLS ID, FHA Lender ID, VA Approval No., and links to disclosures and licensing.
• Consumer Interaction: Offers scheduling calls, online document submission, and personalized guidance.

The detailed explanation reveals a business model centered on traditional lending practices.

While the company aims for efficiency and cost-effectiveness, the core product — a mortgage with stated interest rates e.g., 6.38% RATE, 6.84% APR — remains problematic for those adhering to Islamic financial principles.

The website provides details about their experience, funds facilitated, and families served, which speaks to their operational scale within the conventional financial system.

However, the mention of “discount points” and “loan to value” further confirms the interest-based structure of their offerings.

For Muslims, engaging in such transactions is to be avoided.

Here are some alternatives that align with ethical Islamic financial principles, focusing on real estate and asset ownership without interest:

• Ijara Leasing to Own: A sharia-compliant alternative where the bank buys the property and leases it to the customer. Over time, the customer buys shares in the property until they own it outright.

  • Key Features: Gradual ownership, no interest, fixed monthly payments.
  • Average Price: Varies based on property value and lease terms, comparable to conventional mortgage payments but structured differently.
  • Pros: Sharia-compliant, clear ownership path, predictable payments.
  • Cons: Limited availability in some regions, may have slightly higher overall costs compared to the lowest conventional rates due to different risk models.

• Murabaha Cost-Plus Financing: The bank buys the property and then sells it to the customer at a pre-agreed profit margin. The customer repays in installments.

  • Key Features: Bank purchases and resells, fixed profit margin, no interest.
  • Average Price: Price includes bank’s profit, repaid over installments.
  • Pros: Sharia-compliant, transparent pricing, suitable for asset financing.
  • Cons: Requires immediate transfer of ownership, less flexible than conventional loans.

• Musharaka Mutanaqisa Diminishing Partnership: A partnership where the customer and bank co-own the property. The customer gradually buys out the bank’s shares, eventually gaining full ownership.

  • Key Features: Joint ownership, gradual buyout, rental payments for bank’s share.
  • Average Price: Payments include rent and capital repayment.
  • Pros: Sharia-compliant, flexible ownership structure, risk-sharing.
  • Cons: More complex structure, requires clear contractual agreements.

• Ethical Investment Funds Real Estate Focus: Investing in Sharia-compliant real estate investment trusts REITs or direct property funds that avoid interest-based financing.

  

  • Key Features: Diversified real estate exposure, no direct interest, income-generating.
  • Average Price: Varies based on fund investment, typically accessible with smaller capital.
  • Pros: Passive income potential, sharia-compliant, diversification.
  • Cons: Market fluctuations, less direct control over property ownership.

• Crowdfunding for Property Ethical Platforms: Platforms that facilitate shared ownership or ethical financing for real estate projects, often structured to avoid interest.

  • Key Features: Pooled investment, direct asset exposure, sometimes profit-sharing.
  • Average Price: Entry points can be lower than direct purchase.
  • Pros: Accessible, diverse projects, potential for ethical returns.
  • Cons: Higher risk than traditional investments, liquidity can be an issue.

• Saving for Property Cash Purchase: The most straightforward and undeniably permissible method: saving sufficient funds to purchase property outright or with minimal ethical financing.

  • Key Features: No debt, no interest, full ownership from day one.
  • Average Price: Requires significant upfront capital.
  • Pros: Complete financial freedom, no financial risk, 100% sharia-compliant.
  • Cons: Can take a long time to accumulate funds, requires strong financial discipline.

• Halal Business Loans for property development/purchase by business: For businesses looking to acquire property, seeking asset-backed or profit-sharing financing options that do not involve interest.

  • Key Features: Business-focused, often asset-backed, profit-sharing models.
  • Average Price: Varies significantly based on business needs and property value.
  • Pros: Sharia-compliant for business expansion, promotes ethical enterprise.
  • Cons: Only applicable to businesses, typically requires a strong business plan.

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Intercontinentalcapital.com Review & First Look

Based on an initial review of Intercontinentalcapital.com, the website presents itself as a streamlined, digital-first mortgage lender aiming to simplify a historically complex process.

The design is clean and modern, emphasizing ease of use and cost savings.

While the visual appeal and stated intentions seem user-friendly, a deeper dive into their operations reveals the conventional financial structure that is problematic from an Islamic finance perspective.

Understanding the Core Offering: Mortgages and Riba

The central offering of Intercontinentalcapital.com is mortgage lending. The website prominently displays current mortgage rates, such as a 30-Year Fixed RATE of 6.38% and an APR of 6.84%. These figures immediately indicate the involvement of interest riba, which is strictly prohibited in Islam. Riba, or usury, is considered an unjust gain derived from lending money, creating an exploitative relationship where wealth is generated without legitimate risk or productive effort.

• Definition of Riba: In Islamic jurisprudence, riba refers to any unjustified increment in borrowing or lending money, or in the exchange of commodities. It encompasses both simple and compound interest.
• Consequences of Riba: Islamic texts highlight severe warnings against engaging in riba, emphasizing its detrimental effects on economic justice and social welfare. It can lead to wealth concentration, economic instability, and ethical imbalances.
• Why It’s Problematic: For a Muslim, engaging in a conventional mortgage with interest means participating in a transaction explicitly forbidden by divine law. This makes Intercontinentalcapital.com’s primary service fundamentally incompatible with Islamic financial principles.

Digital Convenience vs. Ethical Imperatives

Intercontinentalcapital.com prides itself on creating an “entirely digital experience” to reduce overhead and offer lower fees.

• The Lure of Convenience: Many modern financial platforms offer convenience and efficiency. However, for Muslims, the ethical and religious compliance of the underlying product must take precedence over convenience.
• Fee Reduction vs. Riba Avoidance: While reducing fees is generally positive, it doesn’t address the core issue of interest. A transaction with lower fees but still based on riba remains impermissible.
• The “Half the Fees” Claim: It’s worth noting that competitive interest rates and lower fees are common marketing points in the conventional mortgage industry. Consumers should always compare the APR, which includes fees, across different lenders to get a true picture of the cost.

Intercontinentalcapital.com Cons from an Islamic Perspective

From an Islamic standpoint, the cons of Intercontinentalcapital.com are primarily centered around its fundamental business model, which relies on interest-based lending.

This single factor overshadows any potential benefits in terms of convenience or cost savings within the conventional system.

Involvement in Riba Interest

The most significant and undeniable drawback of Intercontinentalcapital.com is its direct involvement in interest-based transactions.

As highlighted on their homepage with clear RATE and APR figures, the core product—mortgage loans—is built upon the concept of earning a return on lent money.

• Direct Conflict with Islamic Law: Islam explicitly forbids the giving and taking of interest riba. This prohibition is firmly established in the Quran and Sunnah, making any engagement with conventional mortgage products impermissible for a Muslim.
• Ethical and Spiritual Ramifications: For Muslims, participating in riba has profound ethical and spiritual implications, impacting one’s faith and standing. It’s viewed as a transaction that lacks fairness and promotes an unjust distribution of wealth.
• No Mitigation for Riba: The digital nature, efficiency, or purported lower fees offered by Intercontinentalcapital.com do not negate or mitigate the presence of riba. A transaction involving riba, regardless of its convenience or perceived savings, remains forbidden.

Lack of Sharia-Compliant Alternatives

Intercontinentalcapital.com, being a conventional lender, does not offer any Sharia-compliant alternatives to its interest-based mortgage products. Ollyspack.com Review

This means that Muslims seeking to finance a home purchase through this platform would be forced to engage in a forbidden transaction.

• Absence of Islamic Financing Models: The website makes no mention of Islamic financing structures like Murabaha, Ijara, or Musharaka Mutanaqisa, which are designed to facilitate asset ownership without interest.
• Limited Options for Muslim Consumers: For Muslims who prioritize ethical and religiously permissible financial dealings, Intercontinentalcapital.com provides no viable pathway to homeownership that aligns with their faith. They would need to seek out specialized Islamic financial institutions.
• Conventional Banking Mindset: The company operates entirely within the conventional banking framework, which is inherently incompatible with Islamic finance principles regarding interest and risk-sharing.

Focus on Conventional Financial Metrics

The website’s presentation and featured metrics e.g., “16 Years of Experience,” “$17+ Billion Funded,” “50K Families Served” are typical indicators of success within the conventional financial industry.

While these statistics might demonstrate credibility in that sphere, they don’t address the ethical concerns.

• Emphasis on Quantity over Quality Ethical: The focus is on the volume of loans funded and families served, without any consideration for the ethical nature of these transactions from an Islamic perspective.
• Standard Industry Benchmarks: The “find your lowest rate” and “pay less fees” messaging are standard competitive points in the conventional mortgage market. This purely economic lens overlooks the moral and religious dimensions crucial for Muslim consumers.
• Potential for Misleading Assumptions: Consumers might assume that a company with a strong track record in the conventional market is universally good or ethical, without realizing the specific prohibitions within Islamic finance.

Intercontinentalcapital.com Alternatives

Given the fundamental issue of interest riba in conventional mortgages offered by Intercontinentalcapital.com, finding ethically compliant alternatives is paramount for Muslims seeking to achieve homeownership.

These alternatives are structured to avoid riba by focusing on asset-backed financing, partnership, or leasing models.

Ijara Leasing to Own

Ijara is a Sharia-compliant lease agreement where a financial institution purchases the property and then leases it to the customer for a specified period, with payments that contribute to the eventual purchase of the property.

• Mechanism: The bank or Islamic financial institution buys the property from the seller. It then leases the property to the customer, who makes regular rental payments. A portion of these payments may go towards acquiring ownership shares in the property over time.
• Key Features:
  • No Interest: Instead of interest, the customer pays rent for the use of the asset.
  • Gradual Ownership: As the customer makes payments, their equity in the property increases, or they gradually purchase shares until full ownership is achieved.
  • Risk Sharing: The lessor bank bears some risks associated with property ownership during the lease period.
• Providers in the US: Companies like Guidance Residential, Ameen Housing Co-op, and some Islamic finance divisions of larger banks offer Ijara-based home financing.
• Benefits:
  • Sharia-Compliant: Adheres strictly to Islamic prohibitions on riba.
  • Clear Ownership Path: Provides a structured way to achieve full ownership.
  • Predictable Payments: Monthly payments are typically fixed or adjust based on agreed-upon indices, similar to conventional mortgages.
• Considerations:
  • Availability: May not be as widely available as conventional mortgages in all regions.
  • Complexity: The legal documentation can be more complex than traditional mortgages, requiring careful review.
  • Cost: While avoiding interest, the overall cost might sometimes be marginally higher than the lowest conventional rates due to different risk and profit models.

Murabaha Cost-Plus Financing

Murabaha is a sales contract where the financial institution buys an asset like a house and immediately resells it to the customer at an agreed-upon profit margin.

The customer then repays the total amount cost + profit in installments.

• Mechanism: The Islamic bank purchases the property from the seller. The bank then sells the property to the customer for a higher, pre-agreed price, which includes a transparent profit margin for the bank. The customer pays this fixed price in installments over a specified period.
  • Fixed Profit: The profit margin is agreed upon upfront and does not change with market interest rates.
  • No Riba: The transaction is a sale, not a loan, thus avoiding interest.
  • Bank Ownership: The bank takes ownership of the asset briefly before selling it to the customer.
• Providers in the US: Similar to Ijara, institutions like Guidance Residential and others offer Murabaha structures for home financing.
  • Sharia-Compliant: A widely accepted and utilized Islamic finance instrument.
  • Transparency: The profit margin is clearly disclosed at the outset.
  • Predictable Payments: Installments are fixed and known from the start.
  • Asset Ownership Requirement: The bank must take possession even constructive possession of the asset before selling it to the customer.
  • Less Flexible: Once the price is agreed upon, it cannot be changed, making it less flexible if market conditions change.

Musharaka Mutanaqisa Diminishing Partnership

Musharaka Mutanaqisa, or diminishing partnership, is a co-ownership agreement where the customer and the financial institution jointly own a property.

The customer gradually buys the bank’s shares over time, eventually acquiring full ownership. Maxedbuy.com Review

• Mechanism: The customer and the Islamic financial institution form a partnership to purchase the property. The bank’s share is initially larger. The customer pays a monthly amount that consists of two parts: a rental payment for the use of the bank’s share of the property and a payment towards buying out a portion of the bank’s shares.
  • Joint Ownership: Both parties are co-owners from the beginning.
  • Gradual Buyout: The customer systematically reduces the bank’s share in the property.
  • Rental Component: The customer pays a rental fee for using the portion of the property owned by the bank.
• Providers in the US: Often offered by the same Islamic financial institutions providing Ijara and Murabaha.
  • Highly Sharia-Compliant: Considered one of the most ideal forms of Islamic financing due to its emphasis on partnership and risk-sharing.
  • Flexibility: Can be more adaptable to certain circumstances compared to Murabaha.
  • Shared Risk: Both parties share the risk of the property’s value changes to some extent.
  • Complexity: Can be more intricate in terms of contractual agreements and ongoing management.
  • Liquidity: If the customer wishes to sell before full ownership, the shared ownership structure requires careful navigation.

Saving for a Cash Purchase

The most straightforward and unequivocally Sharia-compliant method of acquiring property is to save sufficient funds to purchase it outright.

This avoids any form of debt, interest, or complex financial contracts.

• Mechanism: Accumulating personal savings over time through diligent budgeting, investment in halal income-generating assets, and disciplined financial planning.
  • Zero Debt: No loans, no interest, no ongoing financial obligations beyond property taxes and maintenance.
  • Full Ownership: Immediate and complete ownership of the property.
  • Financial Freedom: Provides significant financial peace of mind.
  • 100% Sharia-Compliant: No ambiguities or debates regarding permissibility.
  • Eliminates Riba Risk: Completely bypasses any exposure to interest.
  • Strong Financial Position: Cash buyers often have negotiation power in the real estate market.
  • Time Horizon: Can take many years to save enough for a significant property purchase, especially in high-cost areas.
  • Opportunity Cost: Funds tied up in savings might miss out on other investment opportunities, though ethical investment can mitigate this.
  • Inflation Risk: The purchasing power of savings can be eroded by inflation over long periods if not invested wisely.

Ethical Investment Funds Real Estate

For those who may not be ready for direct homeownership but want to invest in real estate ethically, Sharia-compliant real estate investment funds or REITs Real Estate Investment Trusts offer an alternative.

• Mechanism: These funds pool money from investors to acquire, manage, and often develop income-producing real estate. The operations of these funds are screened to ensure they comply with Sharia principles e.g., no interest-based debt, no investment in haram industries.
  • Diversification: Exposure to various properties without direct ownership.
  • Professional Management: Managed by experts in real estate and Islamic finance.
  • Income Generation: Often provide regular dividend distributions from rental income.
• Providers: Look for Sharia-compliant REITs or mutual funds specializing in real estate. Companies like Wahed Invest offer Sharia-compliant investment portfolios that may include real estate exposure.
  • Sharia-Compliant: Investments are screened for ethical compliance.
  • Accessibility: Lower entry barrier compared to direct property purchase.
  • Liquidity: Generally more liquid than direct property ownership.
  • Market Risk: Subject to fluctuations in the real estate market.
  • Indirect Ownership: Investors do not have direct control over the specific properties.

Halal Business Loans for Property Acquisition by Business

For entrepreneurs or businesses looking to acquire commercial property or develop real estate, specific halal business financing options exist that avoid interest.

These are typically asset-backed or profit-sharing arrangements.

• Mechanism: Instead of a conventional interest-bearing loan, a business might engage in Murabaha for asset purchase bank buys property, sells to business at a profit or Musharaka for joint venture property development.
  • Asset-Backed: The financing is tied to a tangible asset.
  • Profit-Sharing: In Musharaka, the bank and business share profits and losses from the venture.
  • No Interest: The core principle is avoiding riba.
• Providers: Specialized Islamic financial institutions and some conventional banks with Islamic finance windows offer these.
  • Sharia-Compliant: Facilitates business growth without compromising Islamic principles.
  • Promotes Ethical Enterprise: Encourages business models based on justice and risk-sharing.
  • Specific to Businesses: Not applicable for individual residential home purchases unless it’s a sole proprietorship acquiring business property.
  • Rigorous Vetting: Requires a strong business plan and financial projections.

Zakat and Sadaqa for Community Housing Initiatives

While not a direct financial product for individual purchase, the principles of Zakat and Sadaqa can be leveraged within a community to create interest-free housing solutions.

This often involves collective funds used to build or acquire properties for the needy or for community use, reflecting the broader social justice aims of Islamic finance.

• Mechanism: Community organizations or non-profits collect Zakat and Sadaqa funds and use them to establish interest-free loan programs for housing, or directly purchase/develop housing for those who cannot afford conventional options.
  • Philanthropic: Driven by charity and community welfare.
  • Interest-Free: Loans provided are Qard Hasan benevolent loans with no interest.
  • Community Focused: Aims to address housing needs within the Muslim community.
• Providers: Various Islamic charities, mosques, and community development organizations.
  • Highly Meritorious: Fulfills religious obligations of Zakat and Sadaqa.
  • Social Impact: Directly addresses housing insecurity in a Sharia-compliant manner.
  • Promotes Brotherhood: Strengthens community bonds through mutual aid.
  • Limited Scope: Dependent on the availability of funds and specific program criteria.
  • Not a Universal Solution: Not a direct financing option for every individual.

Understanding Mortgage Loans and Riba in Detail

Mortgage loans, as offered by Intercontinentalcapital.com and virtually all conventional lenders, are inherently tied to the concept of interest, or riba. This section will delve deeper into why this poses a significant ethical and religious concern for Muslims and the broader implications of interest-based financial systems.

The Mechanism of a Conventional Mortgage

A conventional mortgage involves borrowing a sum of money from a lender like Intercontinentalcapital.com to purchase property.

The borrower agrees to repay this principal amount over a set period, typically 15 to 30 years, plus an additional charge known as interest. Famebooster.pro Review

• Principal and Interest: Every payment made on a mortgage typically consists of two parts: a portion that repays the original amount borrowed principal and a portion that pays the interest on the outstanding balance.
• Amortization Schedule: Early mortgage payments are heavily skewed towards interest, meaning a larger portion of your monthly payment goes to the lender’s profit rather than reducing your principal. As the loan matures, more of the payment goes towards the principal.
• APR vs. Rate: Intercontinentalcapital.com displays both “RATE” and “APR.” The RATE is the nominal interest rate on the loan. The APR Annual Percentage Rate includes the interest rate plus certain fees and charges you pay to get the loan, offering a more complete picture of the total annual cost of borrowing. For example, Intercontinentalcapital.com’s display of 6.38% RATE and 6.84% APR indicates that fees add a significant cost to the loan.
• Discount Points: The website mentions “Disclosed rate assumes 1.99 discount points.” A discount point is a fee paid to the lender at closing to lower the interest rate on the loan. Each point typically costs 1% of the loan amount. This further illustrates the complex fee structures inherent in interest-based lending.

Why Riba is Forbidden in Islam

The prohibition of riba is a cornerstone of Islamic economic principles, found explicitly in the Quran and elaborated upon in the Sunnah of Prophet Muhammad peace be upon him.

• Quranic Injunctions: The Quran contains clear verses forbidding riba, with strong warnings against those who engage in it. For instance, Surah Al-Baqarah 2:275 states, “Allah has permitted trade and forbidden interest.” Further verses emphasize its destructive nature.
• Prophetic Sayings Hadith: Numerous Hadith reinforce the prohibition of riba, condemning not only the one who takes it but also the one who gives it, records it, and witnesses it, emphasizing collective responsibility.
• Economic Justice: From an economic perspective, riba is seen as unjust because it allows wealth to be generated without real productive effort or risk-sharing. It transfers wealth from the borrower often in need to the lender often wealthy without a tangible exchange of goods or services.
• Risk-Sharing vs. Risk Transfer: Islamic finance emphasizes risk-sharing e.g., in partnership contracts like Musharaka, where both parties share in the potential profits and losses. Conventional interest, however, transfers all the risk to the borrower while guaranteeing a return for the lender.
• Inflation and Debt Burden: Riba can exacerbate debt burdens, especially during economic downturns or periods of high inflation, making it difficult for borrowers to escape debt cycles.
• Ethical Implications: Beyond economic justice, riba is viewed as morally reprehensible because it fosters greed, exploitation, and a detachment from genuine productive activity.

The Broader Impact of Interest-Based Systems

The pervasive nature of interest in global financial systems has significant consequences that extend beyond individual transactions.

• Wealth Concentration: Interest tends to concentrate wealth in the hands of those who already possess capital, as they can continuously earn returns without engaging in productive enterprise.
• Economic Instability: The reliance on debt and interest can lead to cycles of boom and bust, financial bubbles, and economic crises, as seen in historical and recent financial downturns.
• Social Inequality: By increasing the cost of borrowing and incentivizing debt, interest can widen the gap between the rich and the poor, making essential goods and services, like housing, less accessible to those with limited means.
• Ethical Degradation: An economy built on interest can foster a culture of speculation, excessive consumption, and a detachment from real economic value creation.

In conclusion, while Intercontinentalcapital.com might offer a “simplified” and “digital” path to homeownership within the conventional framework, its reliance on interest makes it an impermissible option for Muslims.

The ethical and religious mandate to avoid riba is a fundamental principle that supersedes perceived conveniences or cost savings offered by such platforms.

How InterContinentalCapital Works Conventional Loan Process

IntercontinentalCapital.com outlines a seemingly straightforward, three-step process for obtaining a mortgage.

While this process is typical for conventional lenders, it’s crucial to understand it within the context of interest-based financing that we’ve discussed.

Step 1: Schedule a Call

The first step involves scheduling a call with one of their “friendly loan experts” to “find your best rate.” They emphasize that they “never sell your info, and we don’t spam call you.”

• Initial Consultation: This is standard practice in the mortgage industry. A loan officer or broker, in this case will discuss your financial situation, understand your needs e.g., purchasing a home, refinancing, and explain available loan programs.
• Rate Discovery: The “best rate” they refer to will be an interest rate. This consultation aims to pre-qualify you based on initial information and give you an idea of the interest rates you might qualify for.
• Broker Role: IntercontinentalCapital states, “Your dedicated, U.S. based mortgage broker is available to help you every step of the way.” A mortgage broker acts as an intermediary, connecting borrowers with lenders. They typically work with multiple lenders to find suitable loan products. This means they are facilitating a riba-based transaction.

Step 2: Lock in Your Rate

Once an initial rate is discussed, the next step is to “Submit a couple of simple documents to verify employment and credit so we can lock in your new low rate. We’ll also verify your loan amount and terms.”

• Documentation and Verification: This involves providing personal financial documents, including:
  • Proof of Income: Pay stubs, W-2 forms, tax returns.
  • Asset Verification: Bank statements, investment account statements to show down payment funds and reserves.
  • Credit Check: The lender pulls your credit report to assess your creditworthiness and history. IntercontinentalCapital’s fine print mentions a “Minimum 760 FICO credit score” for their disclosed rate, indicating the importance of credit.
• Rate Lock: A “rate lock” is an agreement with the lender to guarantee a specific interest rate for a set period, typically 30 to 60 days, while your loan is being processed. This protects you from rate increases if market rates rise during that time.
• Loan Underwriting: The submitted documents go through an underwriting process where the lender verifies all information, assesses risk, and ensures the loan meets their criteria and regulatory requirements. This includes verifying the “loan amount and terms” which are fundamentally interest-based.

Step 3: Close Your Mortgage

The final step is to “Complete the final paperwork don’t worry, we’ll be here every step of the way to guide you. Enjoy the moment as you receive the keys to your new home.”

• Final Approval and Closing: Once underwriting is complete and approved, the loan moves to closing. This involves signing a large stack of legal documents, including the promissory note your promise to repay the loan with interest and the mortgage or deed of trust which gives the lender the right to foreclose if you don’t pay.
• Closing Costs: At closing, you pay various fees and charges, often referred to as “closing costs.” IntercontinentalCapital states, “At HelloMortgage, we work diligently to help you pay the least amount in fees.” While commendable in a conventional sense, these fees are still part of a riba-based transaction. These can include:
  • Lender fees origination fees, underwriting fees
  • Third-party fees appraisal, title insurance, recording fees
  • Prepaid items property taxes, homeowner’s insurance
• Fund Disbursement: After all documents are signed and closing costs are paid, the loan funds are disbursed, and the property ownership is transferred to the borrower. The key handover is the symbolic culmination of a process that, for Muslims, is problematic.

This three-step process, while efficient and customer-service oriented from a secular perspective, remains deeply embedded in the interest-based financial system. Gigabittechstudio.com Review

For Muslims, each step facilitates a transaction that violates Islamic principles, making it an unsuitable pathway to homeownership.

Intercontinentalcapital.com Pricing Analysis of Interest-Based Costs

Intercontinentalcapital.com prominently displays its mortgage rates on the homepage, specifically highlighting “Today’s Mortgage Rate 30-Year Fixed RATE 6.38% APR 6.84%.” Understanding these figures and the associated costs is critical, especially when evaluating the ethical implications from an Islamic perspective.

Dissecting the Rate and APR

• Nominal Rate RATE: 6.38%
  • This is the stated annual interest rate on the principal loan amount. It’s the percentage used to calculate the periodic interest payments you’ll make on the outstanding balance.
  • This figure directly represents the riba component of the loan. For every $100 borrowed, you would pay $6.38 in interest annually, assuming a simplified calculation without compounding or fees.
• Annual Percentage Rate APR: 6.84%
  • The APR is a more comprehensive measure of the total cost of borrowing. It includes the nominal interest rate plus other costs associated with the loan, such as:
    • Origination fees: Fees charged by the lender for processing the loan.
    • Discount points: Prepaid interest that lowers your nominal rate as mentioned on their site.
    • Broker fees: If applicable.
    • Some closing costs: Though not all closing costs are included in the APR calculation.
  • The fact that the APR 6.84% is higher than the nominal rate 6.38% indicates that there are additional fees beyond just the interest rate itself. This difference of 0.46% 6.84% – 6.38% represents the annualized impact of these other fees.
  • Real Cost of Riba: The APR is arguably a more accurate reflection of the total financial burden of a conventional mortgage, illustrating how various charges combine to increase the overall cost of borrowing, all stemming from the interest-based structure.

The Role of Discount Points

Intercontinentalcapital.com states, “Disclosed rate assumes 1.99 discount points.” This is a crucial detail regarding their pricing structure.

• What are Discount Points? Discount points are essentially prepaid interest that borrowers pay upfront at closing to “buy down” their interest rate. One point typically costs 1% of the loan amount. So, 1.99 points would cost 1.99% of the total loan amount.
• Example Calculation: If you took out a $400,000 mortgage, 1.99 discount points would cost you $400,000 * 0.0199 = $7,960. This is an upfront fee paid to reduce the interest rate from what it would have been without buying points.
• The Riba Connection: Paying discount points is another form of pre-charging for the use of borrowed money, directly falling under the definition of riba. It’s an additional cost imposed for the privilege of securing an interest-bearing loan, regardless of whether it results in a lower nominal rate.

Minimum FICO Score and Loan-to-Value Requirements

The fine print on the website also provides specific criteria for their disclosed rate: “Minimum 760 FICO credit score, 80% loan to value with no subordinate debt and a debt-to-income ratio less than 40.00%.”

• FICO Score: A high FICO score 760 is excellent indicates low credit risk to lenders, allowing them to offer their best interest rates. This means that if your credit score is lower, the actual rate and APR you are offered by Intercontinentalcapital.com would likely be higher than the advertised figures, thus increasing the cost of riba.
• Loan-to-Value LTV: An 80% LTV means you would need a 20% down payment e.g., for a $400,000 home, you’d need a $80,000 down payment. A lower LTV higher down payment reduces the lender’s risk, often leading to better rates.
• Debt-to-Income DTI: A DTI less than 40% ensures you have sufficient income relative to your debt obligations to manage the mortgage payments.

All these factors directly influence the interest rate offered, which is the core of the riba transaction.

While these are standard practices in conventional lending to assess risk and price loans, they inherently determine the extent of the interest burden placed on the borrower.

From an Islamic perspective, any pricing structure built upon these interest-based calculations remains impermissible.

How to Avoid Interest Riba in Homeownership

Avoiding interest riba is a cornerstone of Islamic financial ethics, particularly when it comes to significant transactions like homeownership.

For Muslims, this isn’t just a matter of financial prudence but a religious imperative.

Here’s a comprehensive guide on how to navigate this challenge and achieve homeownership without engaging in forbidden interest. Easyexchangenow.com Review

1. Understanding the Prohibition of Riba

Before exploring solutions, it’s essential to firmly grasp why riba is prohibited.

It’s not merely about exorbitant interest rates, but any predetermined excess charged on a loan or debt.

The core principle is that money itself should not generate money interest. instead, wealth should be generated through productive enterprise, trade, or shared risk.

• Quranic Basis: The Quran explicitly forbids riba, warning against those who deal in it.
• Ethical Foundation: Riba is seen as exploitative, concentrating wealth, creating unjust burdens, and undermining economic justice. It encourages speculation over real economic activity.
• Holistic Approach: Avoiding riba extends beyond mortgages to all financial dealings, including credit cards, conventional loans, and interest-bearing savings accounts.

2. Exploring Islamic Home Financing Alternatives

The primary way to achieve homeownership without riba is through Sharia-compliant financing models.

These models are designed to adhere to Islamic principles by avoiding interest and focusing on asset-backed transactions, partnerships, or ethical leasing.

• Murabaha Cost-Plus Sale:

  • Concept: The financial institution buys the property outright and then sells it to the customer at a pre-agreed, higher price cost + bank’s profit. The customer repays this total fixed price in installments.
  • Riba Avoidance: It’s a sale transaction, not a loan. The bank makes a profit from selling an asset it owns, not from lending money.
  • Key Consideration: The bank must genuinely purchase and own the asset before selling it to the customer.
  • Pros: Clear, transparent pricing. fixed payments. widely accepted by scholars.
  • Cons: Less flexible once the price is agreed upon. may require direct asset ownership by the bank.

• Ijara Leasing with Option to Purchase / Diminishing Lease:

  • Concept: The financial institution buys the property and leases it to the customer. The customer pays monthly rent. Over time, ownership transfers to the customer through a separate purchase agreement or by gradually acquiring shares.
  • Riba Avoidance: Payments are rent for the use of the asset, not interest on a loan.
  • Key Consideration: The lessor bank bears the risk of ownership during the lease period e.g., major structural repairs.
  • Pros: Sharia-compliant, structured like a traditional lease, gradual ownership transfer.
  • Cons: Can be complex. availability varies. maintenance responsibilities need clear definition.

• Musharaka Mutanaqisa Diminishing Partnership:

  • Concept: The financial institution and the customer form a partnership to jointly purchase the property. The customer gradually buys the bank’s shares over time while paying a rental fee for the portion of the property still owned by the bank.
  • Riba Avoidance: It’s a partnership and a gradual sale of shares, not an interest-bearing loan. The rental component is based on actual usage of the asset.
  • Key Consideration: Both parties share risks and rewards proportional to their ownership stakes.
  • Pros: Highly regarded by scholars due to emphasis on partnership and risk-sharing. flexible.
  • Cons: Can be more complex to structure and understand. requires strong legal documentation.

3. Finding Reputable Islamic Financial Institutions

Once you understand the models, the next step is to identify institutions offering these services.

• Specialized Islamic Banks/Windows: Look for dedicated Islamic banks or conventional banks that have established Sharia-compliant divisions often called “Islamic finance windows” or “Sharia-compliant financing”.
• Online Research and Due Diligence: Research their Sharia board, their track record, customer reviews, and ensure they are properly licensed and regulated in the United States. Verify their NMLS IDs and check with relevant regulatory bodies.
• Ask for Scholarly Endorsement: Reputable Islamic financial institutions will have a Sharia Supervisory Board SSB that reviews and approves their products. Ask for documentation or certificates of their SSB’s approval.

4. Strategic Saving for a Cash Purchase

For many, the most straightforward and unequivocally permissible path is to save enough money to purchase a home outright, or at least a significant portion of it, to minimize reliance on any external financing. Kreatecube.com Review

• Disciplined Budgeting: Create a strict budget to maximize savings. Cut unnecessary expenses and prioritize saving for your home.
• Halal Investments: Invest your savings in Sharia-compliant vehicles that generate returns without interest. This could include:
  • Sharia-Compliant Stocks: Investing in companies that adhere to Islamic ethical guidelines no alcohol, gambling, interest-based finance, etc..
  • Halal Mutual Funds/ETFs: Funds that are screened for Sharia compliance.
  • Direct Business Investment: Investing in halal businesses.
  • Physical Gold/Silver: As a store of value, but be aware of storage and liquidity.
• Generate Additional Income: Look for ways to increase your income through side hustles, skill development, or career advancement.
• Long-Term Vision: Acknowledge that saving for a cash purchase can take time, especially in high-cost areas. Maintain a long-term perspective and consistent effort.
• Benefits: Complete financial freedom, no debt, no interest, and the strongest sense of ownership.

5. Leveraging Community and Cooperative Models

Beyond individual financial products, consider community-based initiatives that promote interest-free housing.

• Islamic Housing Cooperatives: These models involve pooling resources within a community to purchase or develop properties, which are then made available to members on an interest-free basis, often through rental or equity-sharing arrangements.
• Zakat and Sadaqa for Housing: While Zakat generally isn’t for home purchase directly for those who are not in severe poverty, some community funds might utilize Sadaqa voluntary charity to help families secure housing ethically.

By focusing on these Sharia-compliant methods and avoiding conventional interest-based mortgages like those offered by Intercontinentalcapital.com, Muslims can achieve their goal of homeownership while upholding their religious and ethical obligations.

Intercontinentalcapital.com vs. Halal Mortgage Providers

When comparing Intercontinentalcapital.com to Halal mortgage providers, the fundamental difference lies in their approach to financing: one operates on interest riba, and the other adheres to Islamic ethical principles that forbid it. This distinction is critical for Muslim consumers.

Intercontinentalcapital.com: The Conventional Model

• Core Offering: Interest-based mortgage loans fixed-rate, adjustable-rate, etc..
• Revenue Model: Earns profit primarily through the interest charged on loans, as well as various fees.
• Regulatory Framework: Governed by conventional banking and financial regulations e.g., NMLS, FHA, VA in the US.
• Key Metrics as seen on website: Advertised “RATE” and “APR,” indicating the cost of borrowing money with interest. Focus on “lowest rate” and “half the fees” within the conventional system.
• Pros from a secular, conventional view:
  • Convenience: Digital-first, streamlined process.
  • Market Competitiveness: Aims for competitive rates and lower fees compared to traditional brick-and-mortar banks.
  • Widespread Availability: Operates within the dominant financial system, accessible to most consumers.
  • Familiarity: Most consumers are familiar with the concept of conventional mortgages.
• Cons from an Islamic perspective:
  • Riba Interest: The fundamental and undeniable issue. All their mortgage products involve interest, which is strictly forbidden in Islam. This makes them impermissible for Muslim consumers.
  • Ethical Non-Compliance: Does not align with Islamic principles of risk-sharing, economic justice, and wealth creation through productive means.
  • No Halal Alternatives: Offers no Sharia-compliant products, forcing Muslim customers to compromise their faith principles.

Halal Mortgage Providers Islamic Finance Institutions

• Core Offering: Sharia-compliant home financing products, primarily Murabaha, Ijara, and Musharaka Mutanaqisa.
• Revenue Model: Earns profit through legitimate trade profit margin on sale of asset in Murabaha, rental income in Ijara, or profit-sharing in Musharaka, not interest on loans.
• Regulatory Framework: Also governed by conventional banking regulations, but with an additional layer of Sharia compliance oversight e.g., Sharia Supervisory Boards.
• Key Metrics: Focus on profit rates not interest rates, rental amounts, and equity percentages. Emphasize ethical partnerships and asset-backed transactions.
• Pros from an Islamic perspective:
  • Sharia Compliance: Strictly adheres to Islamic law, avoiding riba. This is the primary and most significant advantage for Muslim consumers.
  • Ethical Alignment: Promotes economic justice, risk-sharing, and ethical wealth generation.
  • Peace of Mind: Provides Muslim consumers with a clear conscience, knowing their home financing is permissible.
  • Community Support: Often cater specifically to the Muslim community, understanding their unique needs.
• Cons compared to conventional lenders:
  • Limited Availability: While growing, the number of dedicated Halal mortgage providers is fewer than conventional banks, especially in certain regions.
  • Potentially Higher Costs: In some cases, the overall cost of Islamic financing might be marginally higher than the absolute lowest conventional interest rates, due to different risk models and overheads for Sharia compliance. However, this is often a small premium for ethical peace of mind.
  • Complexity: The legal structures can sometimes be perceived as more complex than a straightforward interest-based loan, requiring detailed understanding.
  • Processing Time: Some Islamic finance providers, particularly newer ones, might have longer processing times compared to highly digital conventional lenders.
  • Down Payment Requirements: Some Islamic financing models might require higher down payments to reduce risk for the institution.

Comparative Summary

Feature	Intercontinentalcapital.com Conventional	Halal Mortgage Providers Islamic
Fundamental Model	Interest Riba-based lending	Asset-backed sales, leasing, or partnerships Murabaha, Ijara, Musharaka
Ethical Stance	Does not address Islamic ethical compliance. operates within secular financial norms.	Strictly Sharia-compliant. avoids riba.
Profit Mechanism	Interest charged on borrowed money.	Profit from trade, rental income, or share of genuine profit from partnership.
Cost Display	RATE and APR Annual Percentage Rate	Profit Rate, Rental Amount, or Equity Share
Availability	Widespread and highly accessible.	Growing, but less widespread. primarily in areas with significant Muslim populations.
Perceived Fees	Aims for “half the fees” within conventional framework.	Fees charged for actual services, not for lending money. Overall cost can be competitive or slightly higher.
Legal Structure	Simple loan agreement promissory note, mortgage.	More complex contracts reflecting sale, lease, or partnership agreements.
Target Audience	General public.	Primarily Muslim consumers seeking ethical financing.

For a Muslim consumer, the choice is clear: prioritize Halal mortgage providers.

While Intercontinentalcapital.com offers a seemingly efficient service, its core product is fundamentally incompatible with Islamic principles.

The slight inconvenience or potentially marginal cost difference with Halal providers is a small price for adhering to religious obligations and ensuring one’s financial dealings are blessed.

FAQ

What is Intercontinentalcapital.com?

Intercontinentalcapital.com is a digital mortgage lending company based in the United States that offers conventional mortgage loans for home purchases and refinancing, aiming to provide competitive rates and reduced fees through an online-first experience.

Is Intercontinentalcapital.com Sharia-compliant?

No, Intercontinentalcapital.com is not Sharia-compliant.

Their business model relies on charging interest riba on mortgage loans, which is strictly forbidden in Islam.

Why is interest riba forbidden in Islam?

Interest riba is forbidden in Islam because it is seen as an unjust gain from lending money without genuine risk-sharing or productive effort. Relictum.pro Review

It is considered exploitative and against the principles of economic justice, fairness, and wealth distribution.

What are the main services offered by Intercontinentalcapital.com?

The main services offered by Intercontinentalcapital.com are conventional fixed-rate and likely adjustable-rate mortgage loans for residential properties, with a focus on an entirely digital application and processing experience.

What are the typical rates offered by Intercontinentalcapital.com?

Intercontinentalcapital.com advertises current rates like a 30-Year Fixed RATE of 6.38% and an APR of 6.84% as of the website review date. These rates are subject to change and depend on factors like credit score and loan-to-value ratio.

What is the difference between RATE and APR on Intercontinentalcapital.com?

The RATE e.g., 6.38% is the nominal interest rate on the loan.

The APR e.g., 6.84% is the Annual Percentage Rate, which includes the interest rate plus certain additional fees and charges associated with the loan, providing a more comprehensive measure of the total cost of borrowing.

What are “discount points” mentioned on Intercontinentalcapital.com?

Discount points are fees paid upfront at closing to the lender to “buy down” or lower the interest rate on a mortgage loan. Each point typically costs 1% of the loan amount.

Intercontinentalcapital.com’s disclosed rate assumes 1.99 discount points.

What are some Sharia-compliant alternatives to conventional mortgages?

Sharia-compliant alternatives to conventional mortgages include Murabaha cost-plus sale, Ijara leasing with an option to purchase, and Musharaka Mutanaqisa diminishing partnership, all of which avoid interest riba.

Where can I find Halal mortgage providers in the United States?

You can find Halal mortgage providers in the United States through specialized Islamic financial institutions like Guidance Residential, Ameen Housing Co-op, or by seeking out Islamic finance divisions within some conventional banks.

Is saving for a cash purchase of a home considered Sharia-compliant?

Yes, saving enough money to purchase a home outright with cash is the most straightforward and unequivocally Sharia-compliant method, as it involves no debt or interest. Namastehanoi.com Review

What is the process of getting a mortgage with Intercontinentalcapital.com?

The process involves three main steps: scheduling a call with a loan expert, submitting documents to verify employment and credit to lock in a rate, and completing final paperwork at closing to receive keys to the home.

Does Intercontinentalcapital.com sell customer information?

According to their website, Intercontinentalcapital.com states, “We never sell your info, and we don’t spam call you.”

What are the minimum requirements for Intercontinentalcapital.com’s advertised rates?

For their disclosed rate, Intercontinentalcapital.com requires a minimum 760 FICO credit score, 80% loan to value meaning a 20% down payment, no subordinate debt, and a debt-to-income ratio less than 40.00%.

Are there any upfront fees with Intercontinentalcapital.com?

Yes, like most conventional lenders, Intercontinentalcapital.com will involve upfront fees, including potential discount points e.g., 1.99 points mentioned on their site and other closing costs, which are factored into the APR.

Does Intercontinentalcapital.com offer refinancing options?

While not explicitly detailed in the provided text, mortgage lenders like Intercontinentalcapital.com typically offer refinancing options in addition to purchase loans, which would also be interest-based.

What regulations does Intercontinentalcapital.com adhere to?

Intercontinentalcapital.com adheres to standard mortgage industry regulations, as indicated by its NMLS ID 60134, FHA Lender ID 23789-0000-2, VA Approval No.

018131-00-00, and links to Disclosures & Licensing.

Can I get a home loan with Intercontinentalcapital.com if I have a low credit score?

While you may still be able to get a loan, Intercontinentalcapital.com’s best advertised rates are for those with a minimum 760 FICO score.

A lower credit score would likely result in a higher interest rate and potentially more fees.

What is the role of a mortgage broker at Intercontinentalcapital.com?

Intercontinentalcapital.com mentions dedicated, U.S.-based mortgage brokers who are available to help guide customers. Fiammaonline.com Review

These brokers facilitate the loan process by connecting borrowers with the lender and helping with documentation and terms.

How transparent are the fees with Intercontinentalcapital.com?

Intercontinentalcapital.com states they provide a “clear breakdown of all costs associated with your mortgage, ensuring there are no surprises along the way,” and aim to help you “pay the least amount in fees.” However, these fees are part of an interest-based transaction.

What kind of customer support does Intercontinentalcapital.com offer?

Intercontinentalcapital.com offers customer support through scheduling calls with loan experts and emphasizes that “you get real people to talk to” and that your dedicated broker is available “every step of the way.”