Are you looking to finance your impact windows project? The Window Experts, Inc. has excellent financing options and tools to help make your home hurricane ready and energy efficient. Our replacement impact windows are durable and our energy efficient windows are Energy Star rated. Regardless of your credit or equity, The Window Experts will advise you as to your best options for new impact windows. We offer a free, no obligation consultation with one of our professional In-home Consultants.
Energy Efficient and Impact Window Financing
Whether you are looking for impact windows for hurricane protection or just looking to save on energy costs, we provide the financing to make it possible. Financing is a tool like any other that allows you to get something done that you couldn’t without it. At The Window Experts, we understand this and we try to make it easy for you to utilize our financial tools. During your free, no obligation consultation with one of our professional in-home consultants, we will review several financing options to find something that works for you.
How Financing Works
Bank financing comes from various sources with traditional banks and lending intuitions offer several different types of loans. Lenders look at several factors to assess if they want to fund a loan to someone. There are different types of loans and the interest rate can be calculated by different methods.
One of the most important lending factors and also known as a FICO score, a credit score is determined based on debt management. For the person who has always paid cash and never borrowed, they would have a very low credit score. Too much debt, late payments, and reaching limits on credit cards can also negatively impact your credit score. Usually, a higher credit score means a low interest rate.
Debt to Income Ratio
This is sum of your minimum monthly payments subtracted from your gross monthly income before any deductions (other than court order discernments). Most lenders will take a hard look at this as it’s a good indicator if a prospect can actually afford to pay back the loan.
Equity is the value of a home minus any mortgage debt and selling expenses. The most accurate way to determine equity is to pay for a certified appraisal of your home. A quicker (and free) method is to look at the tax assessor’s report of the value of your property. This is usually a very conservative value based mostly on square footage and doesn’t take into consideration any improvements that didn’t add square footage.
Type of Interest
The interest rate is calculated on the balance of the loan on a monthly basis or sometimes on a daily basis. As payments are made, the balance of the loan is reduced. When the same payment is made next month, a larger portion will go toward paying off the principal. As payments continue the principal continues to shrink at a faster and faster pace.
A simple method of calculating interest where the total amount of interest is determined at the beginning of a loan and added onto the amount you borrowed (or the principal). With this type of loan, you just figure the amount of interest due for a year then multiply it by the number of years for the loan.
Types of Loans
FHA Title 1 Home Improvement Loan
A non-equity based loan intended for general home improvements including Renewable Energy, Hurricane Harding, energy efficient windows and other general home improvements. As the title implies, this loan is underwritten by the FHA and has to meet the FHA underwriting guidelines. This loan can provide up to $25,000 with a payback over 20 years or 240 monthly installments. To qualify for this loan a credit score of 620 or better is required. Also a Debt to Income Ratio of 45% or lower after adding the new payment.
Plus 1 Loan
For Title 1 customers that need up to an additional $25,000. This is available to those who have Credit Score of 680 and higher. Using the Title 1 loan and the Plus 1 loan will net $47,500 after closing cost.
Some benefits of a Title I Loan are:
- 100 % upfront funding.
- No Prepayment Penalties.
- A Secured home improvement loan may have 100% deductible interest. *
- Fixed Rates from 4.95% to 8.75%
- Loan Terms from 5 years to 20 years
- Must be in First or Second place
- Like all secured mortgages, closing costs are required and are usually added to the loan amount.
- No application, appraisal, or out of pocket fees
Unsecured Dealer Financing
Unsecured dealer financing is very simple financing for your home improvement projects. Credit and debt ratio are important while Equity is not a factor at all. Generally, lenders look for a credit score of around 640 and debt ratio of 55%. There have been occasions when some exceptions have been made like accepting a lower Credit Score or a weaker Debt ratio if other factors are strong. With this loan, you can borrow up to $45,000 with a payback up to 12 years or 144 monthly installments.
This loan has no other costs to you in any way and is one of the simplest loans out there.
Same As Cash Loans
Same as cash loans are unsecured financing where you may or may not have a payment. If the loan is paid off within the prescribed time, all payments will apply toward principal with no interest. If the loan isn’t paid off in time, it simply reverts to a standard loan for terms specified on the bank papers. Interest will revert to day one and it is a higher rate than if the loan was taken out originally as a standard loan for term.
Some benefits of our Unsecured Dealer Financing:
- Fully unsecured, no lien or mortgage on your home.
- Loan-by-phone paperless application with decisions in about 10 minutes
- No application or appraisal fees with no prepayment penalties
- Simple Interest
PACE – Property Assessed Clean Energy
Is a way to finance hurricane impact windows, energy efficient windows and an array of energy efficient retrofit projects. In this case, the city offers you a loan and you pay it back through your property tax bills for 15 to 20 years or more. A private lending partnership will review your project and appraise your property in detail. If all goes well, they provide a loan for the approved home improvements. The money is given to the city in the form of a bond funded by the lenders. The bond pays for your improvements. You pay back the loan or the bond through your property tax payment as an Ad Valorum Assessment.
There will be several closing costs to originate this loan but since they are added to the loan, there won’t be any upfront or out of pocket expenses.
- Equity based
- Finance up to 90% Loan to Value (LTV)
- Credit: Must be current on Mortgage: No Late pays – no missed payments – go back 3 years
- Income not a factor – No income verification.
- All costs are added to the financed amount (no “out of pocket)
- Approved in many Cities, not available in all municipality.
- Funding with bonds sold to private investors
- Bond becomes an Ad Valorum Assessment to the Tax Bill
- Homeowner can pay with cash to contractor and then finance with the approved PACE provider. OR Finance the project and sign an “Assignment of Payment” form so the contractor gets paid directly
- Pre-payment fees apply, add 5% to the balance for early payoffs.
- Add-On Interest method for calculating cost of funds
Call Now for a free no obligation consultation with one of our professional In-home Consultants.
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