Solar loans

[kylechoffman]

I just spoke to this program https://www.heroprogram.com/ and they quoted the following for California:

4.99% service fee spread over the term. $95 service fee for administering the thing and then $35 annual fee until its paid off.

The rates are: 5-year interest rate 6.75% 10-year interest rate 7.69% 15-year interest rate 8.15% 20-year interest rate 8.35%

On a $25K system, thats $1343 in fees upfront. On a 10 year, thats $299 out of the gate on the loan plus $134 per year to cover the fees. If you applies your rebate of $7500, you drop it to $210 a month.

[solarix]

Yep, those low interest rate - dealer obtained solar loans have a hefty "fee" from the lender to buydown the rate. Still, its better than no fee with a high interest rate. I think people are enticed by the lower rates and since they are really judging the deal by the monthly payment, they really don't care what the theoretical price is. Of course, you would think that truth in lending ethics would entail disclosing what the real effective interest rate is based on the cash price.

[J.P.M.]

Hero loans can be good but they are not all sweetness and light. Also, not all hero loans are equal, as posts here reveal. Cash is best, HELOC probably next, then maybe HERO a somewhat distant 3d.