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Prepayments


More Ways to Save

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Prepayments


More Ways to Save

A prepayment is any voluntary amount that you pay in addition to your monthly loan payment. These payments help to reduce your loan principal and lower the accrued interest. 


Whether you're about to make your first payment or if you already hit your 30% Choice Target amount, there are significant benefits to making prepayments and paying down your loan early. Prepayments can help shorten the term of your loan and save you money over the term by lowering your accrued interest. 

We understand that every homeowner has a unique situation and lifestyle—here are some prepayment options to help you find the right fit for your needs.

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Refinancing


Refinancing

Refinance your home and bundle your solar system loan with your mortgage to consolidate your costs. Mortgage rates for qualified borrowers tend to be lower than what Mosaic offers and mortgage payments have the added benefit of tax deductibility.

Refinancing


Refinancing

Refinance your home and bundle your solar system loan with your mortgage to consolidate your costs. Mortgage rates for qualified borrowers tend to be lower than what Mosaic offers and mortgage payments have the added benefit of tax deductibility.

Example

You're a homeowner paying a mortgage with a 4.00% interest rate and 20% equity in your home. You also have a Mosaic solar loan at 4.99% interest. Depending on your credit standing, you may be a candidate for a cash-out refinance on your home—allowing you to pay-off your Mosaic loan and consolidate your debt at a lower interest rate.


Here's How To Do It

Consult with your mortgage professional to see if you are a good candidate for refinancing your mortgage and if they offer cash-out options for you to pay down your solar loan. When reviewing options, the key is to find an interest rate that is lower than the current rate you are paying on your solar loan. Once you have progressed through the refinancing process with your mortgage company, connect with us at support@joinmosaic.com to get next steps on paying down the balance on your solar loan.

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Tax Credit


Tax Credit

Homeowners who owe federal taxes in excess of 30% of the total cost of their solar system are well positioned to take advantage of the federal solar tax credit.

Tax Credit


Tax Credit

Homeowners who owe federal taxes in excess of 30% of the total cost of their solar system are well positioned to take advantage of the federal solar tax credit.

Example

You owe federal taxes in excess of 30% of the cost of your solar system—you're likely a candidate for leveraging the federal solar tax credit. You can claim the federal income tax credit and leverage your tax liability to help prepay 30% of your loan. Remember, you can still make further prepayments on your loan after you have met the Choice Target balance.


Here's How To Do It

 

Claiming the Solar Investment Tax Credit

Once you've determined that you're eligible for the tax credit, you'll need to fill out the IRS 5695 Form, “Residential Energy Credits,” to claim it. Here, you'll state the cost of your solar system and calculate the value of the credit, along with the amount of the credit that you will be able to claim. We provide you a step by step guide here. 

It's important to note that even if you do not owe enough in taxes over a given tax cycle to receive the full 30% tax credit, you can claim the tax credit over two years using that same IRS 5696 Form. We walk you through the full process, step by step in our guide here

Just want some more more information about how the federal solar tax credit works? We've got you covered; check out our overview page here.

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Regular Prepayments


Regular Prepayments

Make scheduled payments above the regular monthly payment amount to pay off your principal sooner.

Regular Prepayments


Regular Prepayments

Make scheduled payments above the regular monthly payment amount to pay off your principal sooner.

Example

You have disposable income, above your current monthly payment amount, that you do not need for your daily expenses. Consider putting some of this income towards prepaying your Mosaic loan. 


Here's How To Do It

Using your borrower portal, you can schedule ACH prepayments up to two months in advance.

 

Let's get started:

Sign into the portal

  1. In the left navigation, click “Manage Payments”

  2. At the bottom of the “Manage page”, you will see “Schedule a one-time ACH payment” 

  3. Here you can decide your payment amount and schedule multiple prepayments up to two months in advance. These scheduled payments will be reflected in your “Payment History” tab. 

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Home Sale


Home Sale

Solar panels are appraised as a capital improvement project on the property, similar to installing a pool or other enhancements that increase the value of the real estate. When selling your home, the cost of your solar panels are typically included in the appraisal. The premium that solar panels command as a capital improvement project often covers the balance of the solar loan.

Home Sale


Home Sale

Solar panels are appraised as a capital improvement project on the property, similar to installing a pool or other enhancements that increase the value of the real estate. When selling your home, the cost of your solar panels are typically included in the appraisal. The premium that solar panels command as a capital improvement project often covers the balance of the solar loan.

Example

You are selling your home and still have an outstanding amount on your solar loan, but you do not have enough cash to pay off your balance before the sale of your home. The close of escrow is a great time to pay off your solar loan—your appraisal has included the value of your solar panels, and that amount can then be used to pay off the outstanding solar loan balance. Plus, paying off your loan is a much easier than transferring the loan to the new owner. 

Note: You do not have to own your home outright in order to take advantage of this prepayment option.


Here's How To Do It

As you begin the process for selling your home, we recommend reaching out to our support team to help walk you through the necessary steps for paying down your solar loan. 

If you have the ability to pay down your loan prior to the sale of your home, you are welcome to do this, however, it is not a requirement. If you do not have the cash available to pay down your loan, our support team will help you arrange for your loan to paid down at the close of escrow. 

As always, you can connect with our support team at support@joinmosaic.com.