Siding is a smart investment. You reap immediate benefits such as curb appeal, energy efficiency, and low maintenance; and you get to enjoy the results of siding installation for years to come. While planning your siding replacement project, siding installation costs are part of the equation. The good news is that siding financing comes in a variety of options, and you can choose which suits you and your family to make your siding dreams come to life.
At Alco Products, we understand how overwhelming it can be to have so many siding and financing options to choose from. We’ve helped DC Metro homeowners for over 60 years with over 100,000 installations done the right way. We know you want siding that lasts, and as a James Hardie® Elite Preferred Contractor, you get the best siding installation the industry offers, and a 30-year, non-prorated warranty to back it.
Before considering your financing options, take time to choose your siding material, as that choice will factor into your overall project price. Here are some of the most popular siding materials:
- Fiber cement siding—James Hardie fiber cement siding is the #1 siding product in America, and is in over 8 million homes. Its track record for beauty, durability, and outstanding performance outshines other siding products.
- Vinyl siding—Vinyl siding is known for its affordability, but it’s vulnerable to dents and cracks.
- Stucco siding—High-end stucco siding helps keep the cool air in a home and blocks the heat, but can tend to need repairs pretty regularly.
- Wood siding—Wood siding is beautiful, but requires regular maintenance to prevent wood rot.
Siding Financing Options
Finance your new siding to fit your budget. Consider your current assets, income, and debt in order to look at how the siding installation will impact your lifestyle. Here are some options worth considering:
1. Pay with cash
Cash is an excellent way to pay for your siding so you aren’t strapped for payments after your installation. If you don’t have enough cash, but want the benefit of no interest and no payments, simply save for your siding until you have the amount needed. It takes discipline, but when you have a goal, internal motivation and well-organized budgeting can help you reach it quickly.
Cons—The cons of paying with cash are only associated with your remaining savings. It’s important to have 3-6 months of living expenses in your reserves in case of emergency. Resist the temptation to dip into those emergency funds to get new siding, and find another way.
2. Special financing through a lender your contractor recommends
Many times, home remodeling contractors have a viable relationship with a local lender, and special financing may be offered. The application process and loan approval process are generally pretty quick due to the relationship the lender and contractor share. Loan repayment may be offered at a lengthy amount of time, giving homeowners the opportunity to comfortably fit the loan into their budget. There may even be zero interest for a period of time to draw you in, and that’s fabulous, particularly if you can pay the loan off in that time period, making your siding project affordable. Just be sure to find a contractor who will make the process easy.
Cons— Check carefully any fine print or downside to this type of financing. Ask about what happens if you can’t pay it back in full during the 0% financing period.
3. Home equity loan
The popular home equity loan gives you more time to repay it than other loan types. You may also be able to get a nice tax deduction at the end of the year.
Cons—It’s a process to obtain a home equity loan, and it can take 6-8 weeks to get approved for the loan. Many people don’t want to wait that long for their siding installation. Your home is used as collateral, and there can be additional fees involved, such as appraisal costs and a title search. Your borrowing power is impacted by your appraisal results and what you still owe on your mortgage.
4. Personal loan from a bank
Fixed interest rates are the biggest perk of a bank loan. Automatic loan repayment can be set up to keep late fees at bay and help you never miss a payment. A generous repayment length is likely available with this type of loan.
Cons—Check the small print when it comes to bank loans. Verify the interest rate is what you’re looking for, as bank loan interest rates can be high. Ask about prepayment penalties so you’re not surprised with a fee if you want to pay it off in full at some point.
5. Online marketplace loan
Popular peer-to-peer lending, also known as marketplace lending, often provides fixed rates that tend to be lower than credit card interest rates. Convenient automatic payment plans can be arranged, assuring you won’t miss a payment. There aren’t any prepayment penalties, and the approval process is simple and quick.
Cons—If you don’t have a good credit score, this option likely won’t work for you. Check the interest rates carefully, and be sure you cash in on the best interest rate you can possibly qualify for.
6. Credit Card
A credit card can offer you convenience, and either cash back or rewards for using the card for the purchase of your siding installation. If you pay with a credit card, it’s best to plan on paying it off within one month of when you purchased the siding to avoid high interest rates.
Cons—Due to the interest rate on most credit cards, it’s not the ideal method to use for financing a large remodeling project like siding. Too many people get trapped into paying the minimum payment on their credit card, and it costs them quite a bit more in the long run to make their purchases as a result. Interest rates on credit cards can fluctuate and add to your overall cost of siding.
Call Alco Products to schedule a consultation where you can discuss your D.C. Metro home exterior project with a design consultant. In the meantime, and take advantage of our special, limited time offers, or see our financing options.