Big picture: Paying for a replacement project will come down to how much you plan on paying out of pocket versus how much you choose to borrow. There are many ways to secure funding for a home improvement project. We'll explain the most common ways homeowners finance replacement and more need-to-know details.
While most of us would love to be able to pay for our home improvement projects with cash, it’s not always possible. But that doesn’t necessarily mean that a credit card is your next best option. There may be a lower-interest choice available to you through one of the private or public financing avenues that are commonly used to pay for replacement window projects. Below is one option you might not have considered.
Financing plans to help you cover the cost of your replacement windows could be available if you are working with an Andersen Certified Contractor or with Renewal by Andersen, our full-service replacement division. Opting into financing through your contractor is convenient and will likely enable you to take on a larger project than if you were paying out of pocket.
While the exact details of the financing will depend on the contractor, it’s a widely available option. Often there will be a variety of plans to choose from. In some cases, there may be a low- or even a no-interest option available if the project is paid off within a certain period of time.
Ask your contractor if they offer financing during your first meeting — find more questions to ask at your first contractor meeting.
There are many financing options for new windows, and learning the best one for you will make your project more affordable. There are multiple types of loans that can be used for home improvement projects, like replacing windows. Here are a few to be aware of and the basics on how they work:
| Type of financing | How it works | Pros | Cons | Other considerations |
|---|---|---|---|---|
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Home equity loans (also called second mortgages) are available to people who have built up equity in their homes. Equity is the difference between what you owe on your mortgage and your home’s market value. |
You apply for a home equity loan through a bank and receive a lump sum of money that you repay monthly with interest over time. | Home equity loans usually come with fixed interest rates that are often lower than those associated with other types of loans. | Your home is the collateral, so defaulting could put your ownership in jeopardy. | You must have built some equity in your home to be eligible for this type of loan. Other factors will also be considered, like your income, credit history, and more. |
|
Home equity lines of credit (HELOC)
allow you to borrow against your home’s value if you’ve built up some equity. |
You apply for a HELOC through your bank and are qualified to take up to a certain amount of money, which you pay back with interest over time. Sometimes, HELOCs are structured so you pay only interest for a period and then a balloon payment is due to pay off the principal. | HELOCs qualify you for a line of credit with a set maximum amount, rather than a lump sum. This means you can take additional funds from your line of credit, as needed. A HELOC can be helpful if you anticipate that your project’s scope might expand. | HELOCs typically come with variable interest rates, meaning the interest rate could increase. Again, your home is the collateral, so defaulting could put your ownership in jeopardy. | Eligibility is dependent on having equity in your home, your income, credit history, and other factors. |
|
Home improvement loans
are a type of unsecured personal loan for the specific purpose of improving your home. |
You apply for a home improvement loan through your bank or credit union and receive a lump sum that you pay back monthly with interest over time. | Home improvement loans are unsecured, meaning they don’t require you to put up your home or any other type of collateral. Typically, they come with a fixed interest rate. | Home improvement loans usually come with higher interest rates, because they are unsecured. | A home improvement loan can be a good option if you don’t have sufficient equity to qualify for a HELOC or home equity loan. Eligibility will be based on factors like income, credit score, etc. |
|
203(k) rehabilitation mortgage insurance program loans
are loans that are offered through the federal government’s Department of Housing and Urban Development as alternatives to the conventional loans offered through private banks. |
You apply for a 203(k) rehabilitation mortgage insurance program loan through an FHA-qualified lender and pay it back over time with interest. | 203(k) rehabilitation mortgage insurance program loans allow for a simple repayment process — a single monthly payment that combines mortgage, loan, and interest. The rates are fixed and often lower than conventional loans. | This type of loan comes with certain requirements, like working with an FHA-approved 203(k) consultant and obtaining all permits prior to starting work. | 203(k) rehabilitation mortgage insurance program loans are meant to help people who might not be eligible for other types of loans because of their credit score, income, or other factors. |
If your window replacement project is being done in the context of a larger remodel, you’ll probably be exploring options that offer a higher loan amount, like a HELOC, and you may be wondering what percent of your project budget should be allocated to new windows. The exact percentage will vary based on factors like the number of windows being replaced, the product selected, installation costs, and more.
While it might be tempting to cut some of the budget allocated to windows when you’re looking at a larger project, we’d urge you to think twice. Windows play a crucial role in your home’s structural integrity and aesthetic appeal. There are other ways to keep your budget in mind without sacrificing the quality of your windows. For example, good project management can result in material and labor savings.
TIP: When it comes to value, our 100 Series product line is unbeatable. It’s competitive with vinyl products in pricing but superior to vinyl in performance and aesthetics.
Before you even begin comparing loan options, it’s important to understand some financing fundamentals as well as some basics about how window replacement works.
The interest rate of a loan will have a substantial impact on how much you end up paying over time. The rate you are given will depend on your credit history, credit score, and other considerations, so take all the time you need to compare rates from different lenders to find the most favorable and cost-effective terms.
The length of any repayment period will impact both the cost of your monthly payment and how much you end up paying overall. A longer repayment timeline will likely lower your average monthly cost but may end up costing you more in terms of the total interest paid over time.
Before you apply for a loan, your financier will carefully assess your credit score and history. What credit score you need for window financing will depend on what type of loan you choose and your specific lender.
In some regions, you may be eligible for tax credits or government programs that can assist with the total cost of replacing your windows. These credits and grants are often associated with energy efficiency, so do your due diligence to explore potential cost-saving opportunities.
If you're a DIY enthusiast or have a handy friend or family member, it may be tempting to replace your windows on your own. Before diving in, make sure that you've taken the time to speak to a professional about the scale and complexity of your project. Professional installation can help maximize the benefits and longevity of your windows and help you avoid common mistakes.
In a nutshell, the cost of replacing your windows will likely depend on elements that are unique to your home and personal goals. When you first begin your journey, take note of these key factors that will have the most significant impact on window replacement costs:
The number of windows and their sizes will have a big impact on the cost of your overall project and the time that it will take to complete. Sometimes, buying more windows at once can help you get a discount from the supplier you are purchasing windows from.
Our product lines are made of different materials. The difference in material makeup is part of what allows us to offer product lines at a variety of price points. One of the most economical product lines is our 100 Series, which is made with Fibrex® material. We call this composite the smart alternative to vinyl. Our other product lines have wood interiors and various protective materials on the exterior. The 200 Series and 400 Series product lines both use vinyl on the exterior. The A-Series product line uses a combination of fiberglass and Fibrex material on the exterior, and the E-Series product line uses aluminum on the exterior.
Some selections are considered upgrades, which can increase the price of a window — for example, triple-pane glass. Customizations will also increase the price of a window — for example, a special paint color or a completely unique shape (note that not every shape is custom). The cost of the materials and the non-standard steps required to make upgrades and customizations add to the cost of a window. Make sure you understand what’s standard versus what’s not by asking your contractor or dealer, whoever is helping with your order.
Labor costs, permitting fees, disposal fees, installation materials, and more, are costs related to installation. When you meet with your contractor, ask about installation fees. Of course, you’ll also want to request an estimate from them. If an estimate doesn’t give you insight into installation fees, ask about this. The more information you have, the better you can avoid unexpected surprises when it’s time to pay for your project.
Labor and material costs vary depending on your region and the local market conditions. Another cost related to location could be code-required features. For example, if you live in a coastal location or an area with progressive energy code, your windows might need special features that could add to their total cost. It's important to discuss regional considerations with your contractor before the project begins.
Financing window replacement can be a complicated subject, but it's the first step on the road to a new and improved home. By carefully considering your choices, evaluating your payment options, and understanding the potential benefits, you can make an informed decision that improves your home's function and design for years to come.
Ready to say goodbye to your old windows but not sure how a window project works? You’ve come to the right place! We’re here to explain the major milestones in a window replacement project.
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