If you need a new HVAC system or if your system is not working properly and your technician has told you that major repairs are required, you may be looking at a bill that is a thousand plus dollars. Not everyone has this type of money in their checking or savings account and therefore will need to look at other options to help pay for this unexpected expense. If you’re in this situation, you need to know what options are available to you.
Here is more information on HVAC financing options and how you can choose the best one for your unique situation.
Types of HVAC Financing
When it comes to “financing for HVAC”, there are a variety of options to choose from depending on your credit score, whether or not you have equity in your home, and how long it will take you to repay the loan. Here are some of the most common options:
- Home equity loans: If you have equity in your house, you may be able to use it as collateral to secure a home equity loan. This generally have low set interest rates and monthly payments.
- HELOC: A home equity line of credit is similar to a home equity loan except it is not a set amount. It is a revolving line of credit you can use when you need it.
- Credit card: If you have enough room on one of your major credit cards, you can charge your HVAC repair or replacement. Make sure you check to see what the interest rate is on the credit card you plan to use if you can’t pay off the charge before the next billing cycle.
- Personal loan: Don’t have enough equity in your home or room on your credit card? Ask your banker about personal loan options that might provide you with the money you need to make your purchase.
- HVAC financing options from the HVAC company: Many repair companies have their own financing plans that are tailored to this exact need and could be the answer you’re looking for.
Deciding Which Option is Right for You
Not sure which of the above HVAC financing options is best for you? Consider the following:
- Your credit card situation: Have enough on your credit card to pay for it and able to pay the charge off before the next billing cycle or have a low-interest card? This might be the easiest choice.
- Your banker’s advice: Talk with your personal banker to see what options they have that you would qualify for and which choice they would recommend.
- How much equity you have in your home: If you have a lot of equity, HELOCs and home equity loans are usually the most favorable choices based on flexibility and interest rates.
HVAC Financing Options: Making the Right Choice
When you need to pay for a large repair or HVAC replacement, you can rely on HVAC financing options to help you cover the cost. To make the right choice, talk with your banker, do plenty of research, and choose the option that best suits your financial situation.
