How to Budget for the Cost of Replacement Windows

After years of owning your home, chances are that some if not all of the windows are in need of being replaced. Aged windows not only lose their aesthetic appeal, they're also much less efficient at protecting your home from the natural elements. Old windows are more prone to air drafts and water leaks, leaving your home vulnerable to water damage and an ever-changing internal temperature.

Though replacement windows cost a pretty penny, as a single double-pane window ranges between $175-$1,200, new windows tend to pay for themselves over time. Having airtight windows makes your home more energy efficient, keeping your home at a comfortable temperature without having to overwork the HVAC system.

Worried about covering the cost of replacement windows? Here are budgeting tips to follow.

Determine How Much You Can Afford

When budgeting for the cost of replacing windows in your home, the first step is determining how much you can afford to pay. If you plan to use the money that's accrued in your checking or savings account, you'll want to crunch numbers to ensure that you can afford the cost of replacement windows without creating a financial bind. You can use a budgeting app to determine how much you can afford to pay outright for replacement windows.

By knowing exactly how much you can afford to pay towards new windows, you can create a plan of attack. Worried that you don't have enough money to pay for the large cost of replacing windows? The good news is that there are many other options to take on this big home renovation.

Know Your Financing Options

Paying thousands of dollars for a home project isn't a reality for many homeowners. This is when financing options can be quite beneficial.

A popular option to consider is company financing. Once you've selected a window company to complete the job, ask about financing options. Many companies offer payment plans with interest while others offer a set period of interest-free payments while others offer their own credit card to finance the cost of new windows. Company financing is ideal if you have a solid credit rating and can afford to make the monthly payments.

If company financing isn't available, the next best option is to borrow against your home's equity. Using a home equity loan or line of credit, you can apply for lending that offers a low interest rate. Agreeable loan terms are extremely helpful in offsetting the expense of new windows.

A home equity loan allows you to borrow a specific amount of money. A line of credit gives you access to write checks and also offers a set spending limit. Before you apply for any home equity lending, be sure to shop around. Compare loan rates and terms to find the most reasonable option.

Aside from company financing and equity-based lending, there are other options to consider to pay for the cost of replacing windows. Other top financing options include:

●        Personal loan

●        0% interest credit card

●        Borrowing against retirement funds

●        Rebates

With these financing opportunities, you don't have to worry about coming up with thousands of dollars in cash to put towards new windows.

Don't Replace Windows All at Once

Depending on the amount of money you have to spend or the amount of financing you get approved for, you may be unable to cover the cost of replacing all of the windows in your home, but don't fret! It's plenty okay to break a large window replacement project into smaller ones. This makes the process much less of a financial strain, and you still get to enjoy the benefits of new windows.

So how do you know which windows to replace first? Functionality and aesthetics are two main factors to consider. If any of the windows are hard to open or don't open at all, these should be replaced first. You'll also want to replace windows that are extremely drafty or ones that have shown signs of water leakage in the past. By tackling the most problematic windows first, you can minimize high energy bills and frustrations of faulty windows.

As a rule of thumb, try to replace at least five windows at once. More often than not, the company you choose will give you a small discount for providing its workers a full day of work. This will also save money in the long run!

Conclusion

Having to finance for a home project that costs thousands of dollars is no easy feat. But, with this financing and budgeting tips, you can replace the windows in your home without leaving yourself strapped for cash.