Typical fees associated with solar loans include:
- Origination/Dealer Fees:
- These are the most common fees for solar loans.
- They range from 15% to 30%, and in some cases, up to 40% of the total loan amount.
- These fees are similar to origination fees on home loans and are used to offset the lending risk.
- They can increase the total cost of the loan but may keep the interest rates lower.
- Closing Costs:
- These fees are less common but when present, they are similar to origination fees and cover the risk associated with closing the loan.
- Closing costs can be a flat fee or a percentage of the loan amount.
- Interest Rates:
- The interest rate on solar loans varies based on credit score and loan terms.
- Interest rates typically range between 2.99% and 5.99% APR for unsecured loans with dealer fees.
- Secured loans, which are less common for solar, may have lower interest rates but require collateral.
When considering solar loans, it’s crucial to review all the terms, including fees and interest rates, to ensure the loan aligns with your financial situation and goals. Obtaining multiple quotes can help identify the best options available.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-typical-fees-associated-with-solar-loans/
