Is it time to replace all the windows and doors in your house but you have no idea how to finance this large project? Don’t worry, there are several steps you can take to finance that purchase and do all the replacements at once.

Reasons to Replace

First, let’s review why you want to replace your windows and doors. Chances are you suffer from one or more of the following problems with your windows and doors:

1. They are more than 15 years old;
2. They let in the cold and don’t keep out the heat, and as a result you are racking up large utility bills;
3. They are cracking or yellowing, or parts are breaking;
4. You want a new look;
5. You want to increase security;
6. You want to stop water intrusion.

If you fall into any of these categories you no doubt have looked into replacing all your doors and windows, but the price has made you pause. In fact, the average cost of one window has been estimated at $650. And that number could go higher or lower depending on the material, size and other factors. Depending on the type of front door you desire that could cost up to $2,000.

You still may be wondering if the new products are worth the cost so let’s look at what you will save in energy bills. A variety of factors come into play. If you have single-pane windows and change to double-pane (the industry standard) you will definitely see a huge improvement. In fact, the Department of Energy says this will save you between $126 to $425 per year. If you already have double-pane windows there are still significant savings to be made by upgrading to more efficient ones. Definitely make sure you purchase an Energy Star Window at the minimum, and you may even want to consider Energy Star’s Most Efficient windows. These come with even higher energy standards that window manufacturers must meet to earn that label.

What if you don’t plan to stay in your house forever and you wonder if this new investment is worth it? The answer is, it is worth it. If your windows are already in need of replacement, you won’t get top dollar when you go to sell your house. Increasing the value of your home always helps when it’s time to sell, so definitely keep this in mind when making a decision.

7 Financing Ideas

By now you likely have an idea of what type of windows you want, so now it’s time to figure out how to make the project work for your wallet.

1. Home equity line of credit (HELOC). With a HELOC, you are essentially borrowing money that you can tap into it once you are approved for a set amount. If you go this route make sure you have the funds to make the monthly payments, otherwise it could have an adverse effect on your credit score. And if you already have bad credit, this may not be the best option as you may not be eligible for a HELOC.
2. Home equity loan. This option would give you a set amount of money to use for your new windows, and it does come with a low interest rate.

3. Mortgage refinance. Many people refinance to get a lower interest rate, but this is also very common when undertaking home repairs such as a window and door replacements.

4. Personal loan. If you don’t have much equity built up in your home then a personal loan may be the better option for you. But this often comes with a higher interest rate which is something to keep in mind when weighing your alternatives.

6. Financing from the window and door company you choose. Many window and door companies offer financing so can get everything done all in one location instead of worrying about going to banks, etc. So be sure to ask the window company you choose if they can help. But if the interest is higher than some of the other options listed weight your options carefully.
7. Credit cards. A credit card, while convenient, often comes with the highest interest rates. If you go this route make sure you can afford the monthly payment so you don’t negatively affect your credit rating. Before handing over your credit card make sure you know what your interest rate is. One option may be getting a new card with 0 interest, and that gives cash back or points to use toward other items.
8. Pay cash. We do have to state the obvious—if you have the cash to pay for this purchase, use it. It’s always better to pay cash than to accrue debt.

This is a just a rudimentary look at your options. Talk to a financial advisor if you have one, a representative at your local bank, or from a lending company, to gain all your alternatives. Once you gather all the information, you are ready to make the final decision and do what is best for your financial health. You don’t want to create a situation where you are drowning yourself in more debt that you can’t repay.

It is also very important to set a budget when window shopping. That way you won’t fall into the trap of saying, “I have my home equity loan. We can get whatever we want.” Set your budget and stick to it.

When your method of payment is solidified it’s time to go shopping. If you need help finding a reputable window or door company, search Glass.com for some options near you.

By Tara Taffera

Tara Taffera is the editorial director for USGlass magazine, Auto Glass Repair and Replacement, and Window Film magazines. Her skills and more than 20 years of experience have helped her earn numerous journalism awards, including coveted Jesse Neal Awards.

Tara enjoys spending time with her family and staying active with her husband by competing in races together, including triathlons. She also spends time volunteering in her community and with her church.