@T2. More to come…part II will really get into the core of capitalism vs socialism. Many times they spill over into each other.

@Bliss. No house yet. We actually my go back to renting. Sounds crazy, but 1. We are not sure how long we will be in the tri-state area. Renting might be a feasible option (temporarily). Use the 2 years to stack up a bit more cake and get a nice 3 bedroom instead of 2 so we can accommodate future family members. check it this video. Really breaks it down:

http://www.youtube.com/watch?v=YL10H_EcB-E

@Akhen. Yes the Islamic Bank is assuming the value of the house would increase just like any other bank, but what is better is both parties are bound to the house. Not like traditionally mortgages where the owner can be kicked out of his own house, bank takes the house, re-sells the house for a profit while the homeowner is homeless. The car loan would work the same way. lets say the car was 25K discounted. The IB (Islamic Bank) would sell the car to you for the MSRP. then chop that payment over 4-5 years.

To be honest I would suggest people buy used and just save up (if they can) and buy 75% of the car cash then finance the 25% with a islamic bank. Cars depreciate so rapidly in value that is just make no sense to buy new. You can get used (year before model or 2 years) of any care for a fraction of the new car price. Not to mention there are so many pre-certified programs with warranties so you know the car is legit. I’m looking to buy a car in the next couple months and I’m buying used cash. No note, just insurance. If people have the financial means, that what they should do.