Home maintenance can be a tricky thing. You can go for years with no issues, and then one day look around and notice not one, but all of your windows are drafty and in sad shape. If you don't have cash set aside to make the necessary improvements to your home's windows, (or door replacement) there are financing options to help you cover this cost. Let's take a look at some common choices.
Using an Existing Credit Card
A great option to consider if the dollar amount is on the lower side. This also avoids you having to open up another loan, which means no waiting for an approval. If you have a credit card that rewards you with cash back that is a nice perk, just make sure you can pay it off in a timely manner so you don't negate that benefit. You may also want to check your current interest rate. If it on the higher side, another loan-type may be a better option.
Partnering with the Window Dealer or Company
Many dealers have their own finance companies that they partner with. These loans usually mean a quick approval, which equals convenience for you. Some loans may offer a waved interest period...for example...no interest if you pay back the loan in one year. Just make sure to read the fine print. You may be able to make payments past that initial promotion period, but you will probably be subject to paying all the interest that accumulated during that year. These loans may also come with a higher interest rate.
Home Equity Loan or Mortgage Refinance
These two options allow you to use your home as collateral and may offer a tax deduction of the interest you pay each year. Both will probably give you the best interest rates, which is ideal if you are borrowing a larger sum of money. Of all the loan options these may take the longest in terms of approval process. These also place a lien on your home and add length to your overall mortgage if you choose to refinance.
A smart option for those improvements that may fall between the two to four thousand dollar range. If you have a healthy credit report & rating, your interest rate should be fairly reasonable. You may also have some options in terms of the loan’s length, which translates into a payment that fits your budget. Cons may include a higher rate of interest if your credit score is on the lower side and an approval process that may take a few days/weeks.
The government also provides assistance to qualifying families that are making energy efficient upgrades to their homes. Please visit their website for more information on these programs. https://www.hud.gov/program_offices/housing/sfh/eem/energy-r
Now that you know your finance options, all you need to do is start choosing the perfect door or windows for your home. With so many great options...you may find this decision is harder to decide!