Do you need a large repair done to your HVAC unit, or do you need a completely new unit? If so, you likely already know that you could be looking at a bill that is in the thousands of dollars. If you don’t currently have that in your banking or savings account, you’re probably wondering how you can afford this project. Fortunately, there are a variety of solutions you can explore to help you pay for your HVAC repair or replacement.
Here is more information on the different types of HVAC financing and how to choose the best one for you.
Credit Card
If you have enough room on one of your major credit cards, you can simply put the repair or replacement on there and pay for it over time. While this is a convenient form of HVAC financing, it might not be the best if you have high-interest credit cards or if putting more money on one of your credit cards will cause your credit score to drop.
Personal Loan
An unsecured personal loan may be used to finance your HVAC project.
To find out if this is a good option, talk to your personal banker to see what interest rate and amount you qualify for. Keep in mind that taking out a personal loan will affect your credit score, especially if you end up making any late payments or miss a payment.
Home Equity Loan
If you own your home and have equity in it (i.e., you owe less than what it is currently valued at), you may qualify for a home equity loan as a form of HVAC financing. Home equity loans generally have lower interest rates than personal loans, and depending on how much equity you have in your house, you may be able to qualify for more as well. Many people take out home equity loans when they have a variety of projects to pay for, so this may be a good time to look at a new roof or other major update or repair your home needs. Ask your banker for his or her advice on how much money you should take out to best coincide with your long-term goals of paying off your home.
Home Improvement Loan
This type of loan usually has a lower interest rate and longer repayment term than a personal loan, but it must be used to improve your house and, therefore, increase its value.
Speak with your bank representative to see if this is an option.
Financing Through the HVAC Company
Many companies offer their own HVAC financing programs for their customers. It’s always a good idea to ask the HVAC company you are working with if they have loan programs and what those look like. Compare them against any other type of financing you qualify for to see if this is a good option.
Choosing the Right HVAC Financing
Not sure which HVAC financing option is the best for your project? It’s always a good idea to see what you qualify for, then compare the financing options to see which has the lowest rate, longest term, and will be most beneficial for your long-term financial goals.
