New window installation can make a big difference in your home. Your curb appeal will increase, the value of your home will increase, and you will notice a big difference in the comfort and energy efficiency of your home. However, new window installation is an investment. Even if you know you need new windows, you may be struggling with how to pay for them. Understanding your options can help you develop a good plan.

Beautiful large brown brick home with large windows and a front porch with pillars.

Using Cash and Equity

The best financial situation for exterior home improvements is to use cash that you have saved for this purpose. You won’t accrue debt, you won’t pay interest, and you know the exact budget you have to work with. However, when considering exterior home improvements, many homeowners don’t have enough cash saved. Depending on your situation, it may be worth it to consider refinancing your home and using the equity you’ve built up to finance your home improvements. If you have been in your home for a while, you will likely be able to do a “cash out” refinance and have funds available for your new window installation. A benefit of refinancing is that you may also be able to lower your interest rate, making it a smart choice.

Financing from the Installation Company

Many window companies and exterior home improvement contractors offer financing. The benefit of using this option is that you can take care of everything in one place and won’t need to worry about coordinating the timing of your financing with the timing of your project.

Loans and Lines of Credit

Borrowing money for home improvements isn’t always a bad choice. A home equity line of credit (HELOC) allows you to borrow against the equity built up in your home without refinancing. With a HELOC, you only borrow what you need. A home equity loan is similar, but will give you a set amount in a loan. Both of these options rely on good credit, good standing with your mortgage company, and come with competitive interest rates. Personal loans and credit cards are also available options, but can be riskier. Personal loans usually come with a much higher interest rate, and credit cards are typically not a good idea to use for financing home improvements. The only exception is getting a new card with a 0% interest rate that has a good rewards program. If you can discipline yourself to pay the card off before the 0% interest rate ends and use it only for home improvement, it can work well.

Talk to Your Contractor and a Financial Expert About Options for New Window Installation

Your contractor understands that exterior home improvement projects are an investment. Many of them have had clients utilize various payment options and can suggest good options for you. Your contractor understands the benefits of new window installation, but also knows that their business relies on making their service attainable for homeowners. Working with a contractor and a financial advisor can help you set your budget for new window installation and finance that investment in the best possible way for your situation.

Installing new windows is a strong investment in your home, and one you will not regret. With time and research, you can find the financing option that works best for your situation and enjoy your new windows without worrying about increased debt. We can help. Contact Armorvue Home Exteriors for a virtual appointment to talk about ways you can finance new windows for your home.