Investing in impact windows may be a worthwhile investment for homeowners who live in a location prone to hurricanes, such as Florida’s Gulf Coast. Hurricane impact windows offer amazing hurricane protection against severe weather. They also increase your home’s security as well as its energy efficiency while reducing outside noise. But even with all these benefits the upfront costs can be high for some folks to pay for them all at once. That’s why it may be helpful to instead spread out the expense of impact windows over time. If this is of interest, keep reading because in this article we will share many financing options for impact windows. There are several options, which means that being able to finance your windows is possible for most people.
Disclaimer: The information and opinions expressed in this article are provided for general informational purposes only and are not intended to provide specific advice or recommendations for any individual. The information is for informational purposes only. It is not a substitute for professional advice, and it is not intended to be financial advice or otherwise professional advice.
New construction loan mortgage
If you are building a new construction home you may be able to include the cost of impact windows into your construction loan mortgage. Many home builders in the area include or offer hurricane impact windows as an option for their new construction homes. If this is the case, you can choose to install them and include the cost into your loan for the home. This allows you to get the impact windows (or other hurricane protection products) without having to apply for or qualify for an additional loan or pay out of pocket.
Home Equity Loans
Another option may be to utilize a home equity loan. These loans let you borrow against the equity you already have in your house. Different banks will offer different rates, but they typically have a reasonable interest rate compared to many other financing options since it’s secured using your home.
With a home equity loan, you get fixed monthly payments, reasonable interest rates, and potentially tax-deductible interest. On the other hand, your home will be used as collateral, and the approval process often takes a considerable time compared to other methods.
There are some eligibility requirements for home equity loans, which you will need to check with your preferred lender. For instance, many lenders want you to have at least 15 to 20% equity in your home. In addition, you will need a good credit score to qualify for a home equity loan with the best terms. Proof of stable income and employment is also needed to show that you are able to pay back the loan.
This may be a good choice as home equity loans often let you borrow a good amount. This makes them a great fit for bigger projects like installing impact windows or hurricane protection. The loans also have repayment terms that often range from five to 30 years so you can get flexibility based on your needs. However, you should consider other types of loans, grants, and incentives before making a decision.
Home Equity Line of Credit
This option is similar to a home equity loan. Like a home equity loan you can borrow based on your equity you have in your home. However, you get a line of credit rather than a lump sum and can take out money as needed.
With this form of financing, you get flexible borrowing, lower initial interest rates, and the need to only pay interest on what you own. However, just keep in mind that the variable interest rates can increase over time, and your home can be used as collateral.
Similar to the home equity loan, lenders want you to have a reasonable amount of equity in your home before you qualify. Having at least 15% is a good rule of thumb although more is always better. A strong credit score is also needed to qualify for this sort of loan if you want favorable terms. Proof of employment and stable income are also needed to ensure you can repay the credit loan.
There are a few things to consider with this option, including the draw and repayment periods. Your bank will set their own terms, but many have a draw period of around five to 10 years. This is the period you have to borrow money. This is followed by a repayment period of about 10 to 20 years. This is the time you have to repay whatever amount you choose to borrow. In addition, the amount you borrow can vary based on the equity you have in your home and how creditworthy the lender finds you.
Personal Loans
Personal loans can be either secured or unsecured, depending on the lender and what they offer. They may also have a fixed rate or a variable rate, also depending on the lender.
On the plus side this type of loan typically has a quicker approval period. On the down side the repayment terms are often shorter, and the interest rates are higher than for home equity loans.
This type of loan is commonly used for large purchases, including home improvement projects like installing impact windows, etc.
As with other options we’ve shared, a great credit score is the key to getting a personal loan with favorable terms. If you have a lower credit score, you might not be approved or may need to deal with higher interest rates. Stable income is also needed to show you can repay. Lenders will additionally consider your debt-to-income ratio to decide if you can handle more debt.
Manufacturer Partner Financing
Some window manufacturers and installation companies offer financing options to their customers. This financing is usually through third party partner programs that allow customers to finance the windows. The programs vary widely from one program to the other, and they include everything from loans to financing through partner credit cards. In turn, it is best to research the specific program(s) that are available in your area.
Like with other financing options, you may need a credit check to qualify for manufacturer or third-party financing. In some cases, proof of stable income is also needed as well to qualify. If there are promotional rates, you need to meet all the terms and conditions the installation company or manufacturer has in place.
As we mentioned above, these programs vary widely from one to another. So it is recommended to research the specific program(s) that are available before making a decision.
Credit Cards
Another option is to pay for your impact windows using a credit card and then paying it down over time. It should be noted that credit cards have higher interest rates. However, some of them offer 0% promotional interest rates for some time, such as 12 months. So this can be a feasible option if you are able to pay off the balance within the promotional period. If you are not, you can still pay for the purchase over time, but it will have a higher interest rate than some other options on this list.
Benefits of using a credit card include that the application is typically easy and quick. Also, credit cards do not require collateral like with a secured loan. Also, using a credit card may allow you to receive potential cashback or rewards. These rewards will not pay for the purchase, but they do offer some benefit.
Things you should consider when paying with a credit card is that the interest rates can be high, especially after the promotion period ends. In addition, if not managed well, credit cards can negatively impact your credit score.
Keep in mind that your credit limit will determine whether you can cover the full cost of impact windows. You also want to make sure you repay the balance within the promotional period, if there is one to avoid much higher interest rates. Consider adding automatic payments to help reduce extra fees and interest.
Choose a Professional Impact Window Installation Company
Installing impact windows (or other hurricane protection) is a great investment for your Florida home. At Eurex Shutters, we specialize in impact windows, doors, and hurricane shutters for customers in Southwest Florida. Since 1986 we have completed 25,000+ installations of impact windows, doors and hurricane protection products. Rest assured you will protect your home and get peace of mind that your home will be protected when you choose impact windows from Eurex Shutters. Contact us with any questions or to start your impact windows project!
Or call (239) 369-8600 for immediate service.
