Considering financing a solar system? Always speak with your bank or local credit union. If you have good credit and equity in your home, it’s usually very easy to qualify for a solar loan.
Loans That Pay For Themselves
The length of your solar loan term depends on the product, and can be anywhere from one to 20 years. Longer terms usually result in higher interest rates but lower monthly payments, while shorter loan terms have higher monthly payments but lower interest rates. Whichever you go with, make sure you can comfortably budget in the cost of your new monthly payments.
As with any other kind of loan, interest rates for solar loans depend on the product you choose, the financier, your credit score, and the amount that you want to borrow. Generally they can range from as low as 1.99 percent to as high as 13 percent. The interest rate for any loan you’re considering can have a major impact on your solar costs and long-term savings, so make sure to thoroughly compare the various interest rates you’re offered.
Certain types of loans, known as mortgage-backed or secured loans, will require that you put up an asset (typically your home) as collateral. Mortgage-backed loans generally have lower interest rates than equipment-backed loans (also known as unsecured loans), because your financier will have the option to foreclose on your property if you default on the loan. If you have collateral tied to your loan, it can impact your finances when you move as well as your annual tax benefits – seek clarification on this issue with your lender before you sign on the dotted line.
Services We Offer For Solar Home Loans
We specialize in providing our solar clients with a top rated experience in finding the right solar loan for their situation.