You have three solutions; first Andersen makes a Tilt Wash Conversion Kit to transform your current window into a modern day 400 series Tilt Wash without the need to remove the existing frame or install new interior trim and siding outside. Second a new replacement window can be installed inside the existing frame. Third a full frame window can be installed to completely replace the window down to the rough opening. This method is the most expensive and invasive but it is the best way to insure 100% air and water sealing and integration with the water management system.
This is caused by condensation. The same thing that happens to a cold beverage on a hot day. The cold glass collects the humidity from the air inside the home and it will build up on the bottom of the glass pane where it’s the coldest. This is a major problem on old windows that are not thermally efficient. This can also happen on new efficient windows when temperatures outside are very cold and the humidity inside is very high. It’s recommended to have inside humidity around 15% in the winter to prevent this.