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Paying Cash Or Financing Your Replacement Windows: Which Option Is Best?

by Harvie Simms

Replacing the existing windows on your home once they've become old and less energy efficient can be quite pricey. In fact, the average cost of mid-grade window replacement for a typical home with 10 windows is nearly $10,000, including installation. If you don't want to deplete your savings account, you might be considering the option of financing your new windows. Before you make a decision, however, it's worth taking the time to assess the advantages and potential drawbacks of paying cash versus financing replacement windows.

Pros and Cons of Paying Cash

When you pay cash for your new windows, you'll be paying a pretty substantial chunk of change directly to the window installers. There are a number of benefits to doing this; for starters, if you have a poor credit score, you won't have to worry about applying and getting denied for financing. Furthermore, your investment will begin to pay off right away in monthly energy savings. You may also avoid paying interest, saving you money in the long-term.

On the other hand, if you're paying cash, that typical $10,000 replacement window cost can eat away significantly at your savings, potentially not leaving you with much to spend on other home maintenance needs or emergencies. 

Pros and Cons of Financing

Of course, there's always the option to finance your replacement windows either through the window installation company itself or through a private lender. The nice thing about this is that interest rates are relatively low; depending on your credit, you may even be able to avoid paying interest altogether if you pay off your balance within a designated period of time. Furthermore, if you take out a home improvement loan to pay for your new replacement windows, you could also be eligible for some tax write-offs.

Unfortunately, if you have less-than-ideal credit, you might have trouble getting approved for financing or you may end up stuck with a high interest rate. Plus, you'll be detracting from your total amount of disposable income until your windows are paid off. By then, it might already be time to start thinking about replacing your windows again!

The Bottom Line

As you can see, there are many factors to consider when determining whether financing or paying cash for your new windows is right for you. Be sure to take all of these specifics (especially your credit and eligibility!) into consideration before you decide one way or the other. Visit http://www.newjerseywindow.com to learn more.