No question about it, solar energy is one of the best renewable resources of energy, and one of the best ways to save money on your energy bill. Here in the West, sunshine is bountiful nearly twelve months out of the year and it makes good sense to install a solar energy system on your home.
Of course, it’s not cheap. In fact it’s rather expensive to install solar on your home. The reward, I think most will agree, is worth it, but that doesn’t change the fact that getting into solar usually requires a second mortgage on your home. So the question I put to you today, dear reader, is should you pay off your solar installation before selling your home or transfer it into the sale of your home.
It’s not as simple as you might imagine. Usually, the finance company of your solar installation has worked themselves into a strong position in your mortgage scenario. While the lender that holds the largest note on your property is usually in first position to collect on a sale, it is possible for other lien able lenders to get in line. So when you go to sell your home with an outstanding solar installation loan, you will be required to file a subordination agreement, putting your solar loan in second position following the new lender for your sale.
It may be more advantageous to pay off your solar before selling or refinancing your home, to circumvent the need for a subordination agreement.
In addition to solar, Elon Musk offers a battery product that accomplishes powering your house without the power grid. You may want to check out the whole house battery as an alternative.
In any event, I hope you are surviving the pandemic, both physically and emotionally, as well as financially.
Be safe.