Tweet
Hey guys, so I finally found the solar company that i'm going to go with but now I dont how i'm going to finance it. I currently have a solar loan with my credit union that is at 6.5 interest but i know there's other options out there and want to see what you guys recommend. The company is offering financing but they have a 12% mark up and I noticed that alot of solar companies add extra 1,000 if you finance with their bank. But what if I went to their bank on my own and go approved with them without the solar companies help would that work? let me know what you guys think. thanks again you guys have been a big help in the process.
-
-
My thoughts on the options is:
1> Cash
2> HELOC from credit union
3> cash-out refi of house
4> other credit union loan
And somewhere after "loan from guy named Guido" is what the installer provides for financing
(Ok I exaggerate a little - but I'd definitely look at other options before using the installer's financing.)
-
If I needed to finance something like a PV system, After I learned something about how it works and something about proper system sizing, I'd spend some time learning about the time value of money, a bit about process economics, something about comparison of alternatives - as in, where else could I invest the same as the loan amount/payment for a perhaps better long term ROI, a lot about how I pay for power along with a REALISTIC appraisal from several knowledgeable sources (and not from some peddler) of how rates may change in the future before I got serious about looking to a loan. It is a distinct possibility solar may not be as cost effective as you may have been led to believe or have been sold on.
My standard - and what's sometimes considered a condescending spiel: I only suggest to know - really know - what the long term costs/benefits/alternatives are before committing a lot of resources and some future financial freedom to something you are ignorant about until those things are better understood. A few hours of meaningful self education can pay big dividends.
As usual, take what you want of the above. Scrap the rest.Comment
-
Hero and companies like Hero are a decent option and approval is simple. You must contact your escrow company to add Hero or the likes payments to your monthly mortgage payment so you dont screw yourself come property tax time though as payments are done once a year via your property taxes. Ive done many jobs with Hero funding and its a very simple process compared to a HELOC or refi.Comment
-
It varies but it's between 5% and 8%. The interest is a 100% write off and if the money was used towards a repair the interest and principal can be deducted. Call them or find hero online. They have amazing knowledgeable customer service.Comment
-
On HERO loans - watch the fees. Some around here run close to 10-12%. HELOC's may be a better alternative if possible, but that's just opinion. Cash is still the best option.Comment
-
Watch out for YGRENE finance program. The fees are high in my opinion. I posted my YGRENE example in another link on this forUm. I would include them here but don't know how to copy and paste.Last edited by Steve C; 10-01-2016, 01:41 AM.Comment
-
open equity line of credit if your house has equity, you can shop for the rate (4.5%)Comment
-
Be wary of the banks when taking out a loan. Keep in mind they use your promissory note to fund the loan check. There is a liability generated on their book keeping entries from your prom note (asset). Whatever you sign for the bank also must pay you. This isn't well known among the public but very well known to bankers.
MOD NOTE. Please do not attach advertisement link to your post without getting permission from the Admin.Comment
-
I would avoid Hero at all costs for financing solarpvComment
-
-
Look into Greensky financing. They offer a 70/30 split loan financing. 30% with no interest, no payment for 12 months. If you pay it back before 12 months it's free money but if you don't get make you pay all the interest accrued in that 12 months. The 70% loan is a 12 year 3.99 apr, it's best financing I could find and did use it.Comment
-
https://www.solarpaneltalk.com/forum...t-worth-it-imo
https://www.solarpaneltalk.com/forum...loan-questions
My comments are at the bottom of first link and second link is post I created analyzing hero loans.
There are many many reasons not to go hero, but big ones are : it doesn't give as much tax deduction as they imply it will, very few people will buy your house if it has a hero tax assessment on it until you clear it, the interest rates are not competitive with other solar loans, and the biggest: their closing fees are very very high. Essentially those sales people and the bank are making great money off you.Last edited by cebury; 10-05-2016, 07:59 PM.Comment
Comment