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As we approach the middle of October, many of our friends and neighbors are thinking about updating their New Jersey or New York Metro home with Energy Star certified replacement windows and patio doors. Cold weather is ahead, and if you’ve decided this year you aren’t going to fight drafty corners or put up with excessive condensation on your windows, we can help.
Your window financial decisions are just as important as considering which style, or styles, are perfect for every room, and which accessories to add for enhanced comfort and beauty. So, let’s talk about several options you can use to pay for your new Renewal by Andersen replacement windows.
Financing a large purchase like a new house or a new car often means financing at least part of the total price. Some homeowners hesitate to add another monthly payment, but there are a few advantages, if you choose your financing vehicle wisely. For example, interest rates are negotiable today, and consumers have more flexibility than our parents and grandparent had 50 years ago.
Rates are still very low for almost all types of consumer loans compared to 2008 and 2009 averages. The median HELOC (home equity line of credit loan) in the US during June 2017 was hovering around 5 percent. Keep in mind that rates vary depending on the amount of the loan, your geographic location and your credit score. We found rates as low as 3.5 percent, with some HARP loans under 3 percent.
Although credit card financing is usually associated with higher interest rates than bank loans, most of the major card companies are willing to extend interest free credit to customers with an established relationship and a solid track record of paying on-time. These zero-interest financing specials typically provide 12 to 24 months without interest. There is usually a fee for the privilege that ranges from 2 percent to 5 percent, depending on your credit score and which card company you use. Shop around. Explain why you need the money. And, don’t be afraid to skip this option if your credit card company isn’t willing to work with you.
If you itemize deductions, points (if you pay down the interest rate) and interest on payments may be fully deductible. Talk to your tax accountant and/or your lender to determine which tax credits and deductions are available.
Right now, Renewal by Andersen of New Jersey and New York Metro is offering special financing with No Money Down, No Payments and No Interest for 1 Year1. Check out this page for details.
Low interest rates and tax deductions don’t automatically mean that financing is better than paying cash. Here are some possible drawbacks for you to consider.
#1. Adding another monthly payment can mean added stress if it means you’ll have to adjust your lifestyle.
#2. There are additional fees associated with getting a loan that may increase the overall debt more than you can tolerate financially.
#3. Long-term credit card debt (unless you negotiate for zero-interest financing) will ultimately cost you more than paying cash. And, if you are ever late, the card company can boost your interest rate significantly, which could mean any savings you could have captured will be consumed with late fees and higher interest.
Buying any big-ticket item can be scary. And, if you’ll be drawing down your savings significantly, that can make the whole process more stressful. If you’re planning to buy a new vehicle, retire soon, or change jobs in the near future, paying cash may not be the best solution. Before you pull out all of your cash, make sure you will still have an emergency fund that covers you and your family for at least 3 months. Here are two very important things every homeowner should think about when considering a cash option.
Building a healthy return on investment today is almost impossible if you are planning on growing your savings account. Most banks, credit unions and credit card-backed savings accounts are paying less than 2 percent today in traditional savings accounts. Investing in modern, high-quality replacement windows starts paying you back immediately with the potential for lower heating and air conditioning bills and enhanced comfort. Why let your money hang out in a bank when you could be seeing some obvious benefits immediately after installation.
Growing a nest-egg takes a long time today, but if you have to totally deplete your savings account to modernize your home, you could be putting more than your financial future at risks. No cash savings means if you suddenly get sick or lose your job, your family may struggle for essentials, not the extras.
Still not sure whether it is better to pay cash or finance your new windows? Every day you wait to get your order in means another day your hard earned cash is escaping through the low-efficiency windows in your home. Fortunately, we have in-house experts to help you crunch the numbers and come up with a game plan designed specifically for you. Just fill in the short form on this page, or give us a call at 866-609-5033 to speak to a Renewal by Andersen of New Jersey and New York Metro replacement window specialists. Be sure to ask us about our special financing promotion.
1No payments and deferred interest for 12 months available, subject to qualifying credit approval. Not all customers may qualify. Higher rates apply for customer with lower credit ratings. Interest accrues but is waived if the purchase amount is paid in full within 12 months.
Learn Everything You Need to Know BEFORE Buying Replacement Windows