Solar Installers’ Risky Tactic for Avoiding Dealer Fees Results in Collateral Damage
Solar energy is gaining more popularity in recent years due to its environmental benefits and cost-effectiveness. As a result, more homeowners are looking into the possibility of installing solar panels on their properties. One of the biggest challenges of switching to solar energy is financing. With the rising demand for solar, many solar installers in San Antonio are recommending homeowners get their loan through a home equity line of credit or through their local bank, but is this the best option for homeowners?
The Pros and Cons of Financing Solar through Home Equity or Credit Unions
While it may seem like a good idea to get a loan through a home equity line of credit or through credit unions, it is important to consider the long-term impact on your property and credit score. One significant drawback of this type of loan is that it places a UCC filing lien on your property for the solar loan, which can make it more challenging to sell your home in the future.
In addition, when you apply for a loan through a credit union or home equity line of credit, they will pull a hard credit inquiry on your credit report, which can lower your credit score. This is not the case when you apply for a loan through solar lenders like Good Leap and Mosaic, who do not require a hard credit inquiry to apply for a solar loan.
Furthermore, when it comes to paying off the loan, credit unions or home equity lines of credit may impose early termination fees, and they do not re-amortize the loan payments as you pay it off. This is another area where solar lenders like Good Leap and Mosaic excel, as they do not have early termination fees and re-amortize the loan payments as you pay it off.
The Benefits of Financing Solar through Traditional Solar Lenders
Traditional solar lenders like Good Leap and Mosaic offer a range of benefits that are not available through home equity lines of credit or credit unions. They offer lower interest rates, flexible payment terms, and a seamless application process. Moreover, they do not require a hard credit inquiry, which means that your credit score is not negatively impacted when you apply for a loan.
In conclusion, while it may seem like a good idea to get a loan through a home equity line of credit or credit unions to finance your solar installation, it is important to consider the long-term impact on your credit score and property. Solar lenders like Good Leap and Mosaic offer a range of benefits that are not available through home equity lines of credit or credit unions. As a responsible homeowner, it is important to explore all available options and choose the one that suits your needs best.
With solar energy becoming more accessible, there has never been a better time to consider installing solar panels in your home. Take the time to explore your financing options and choose a lender that offers a range of benefits and flexible payment terms