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How Solar Panel’s Affect Your Home Loans In San Diego

The future’s bright!

These days, many of us are looking to lower our impact on the environment. From recycling more, adopting a plant-based diet, and conserving our home’s energy, there’s a lot that we can do to better our environmental footprint. One of the most popular ways to reduce energy bills and better the planet is to install solar panels on roofs. Believe it or not, but such additions can dramatically affect home loans in San Diego, too.

Owned vs. Leased

Solar panels are becoming hugely popular for homeowners. Not only does it lower energy bills, but the homeowner may be eligible for sizable tax credits. The National Association of Realtors (NAR), the National association of Home Builders (NAHB), and real estate company, Redfin, have all released surveys indicating that solar panels increase the value of a home.

For people who own rooftop power systems, solar does add to the home’s value. In California, installation averages out at around $25,000. What most homeowners don’t know is that the method payment for this installation can have serious repercussions if they intend to sell or refinance. Generally, if the solar panels are owned and paid in full, the price tag of the house increases. If the solar panels are leased, it could sabotage the entire home deal. With insufficient documentation, clarity, and denied mortgage applications, solar panels that have yet to be paid off hinder a home’s deal.

Signing Up For Solar Panels

Mortgage and real estate issues aside, solar panels do save homeowners a huge amount of money in the long term. In sunny California, there’s no doubt that these applications are put to good use.

If you opt for a lease on a solar panel, be sure to understand your long-term obligations. Most importantly, if you’ve got a leased system and plan to sell or refinance, contact the leasing company well in advance to learn about the lease transfer and buyout options.

Via. Gaylord-Hansen Mortgage Team