Can’t take the cold or the heat anymore? Whether it is getting a new HVAC system or replacing the one you have, this could be a nightmare thanks to the high costs. A heating, ventilation, and air conditioning system can cost between $2,000 and $15,000. Breathtaking, right? Not a reason to give up yet.
Fortunately, there exist alternative means of appliance financing. You can acquire funding from government programs, dealers, financial institutions, etc.
The following are some options you can explore when financing for appliances:
Using Home Equity
You qualify to access a home equity loan if the current market value of your home is more than your mortgage loan. Home equity is a one-time loan. So, do you think it is worth a shot? Home equity finance for HVAC attracts a lower interest rate compared to other methods.
Financing from HVAC Seller
HVAC sellers make special arrangements with credit card companies to offer HVAC financing as well as other types of lease-purchase programs. However, only a few dealers have this program for their customers. They can also arrange for a biannual HVAC system maintenance inspection, which ensures it keeps running efficiently.
With dealer financing, you might not need to have upfront payment. You will make all payments during the agreed repayment period.
This financing method is also easy and efficient. With this type of financing, you will likely enjoy fast approval for your loan.
Depending on your budget, you can choose a flexible repayment plan for you.
Using Personal Loan
Personal loans have quickly gained popularity. From laptop financing to jewelry financing, these loans can come in handy. You can use these loans for HVAC financing. They are safer since most of them are not secured, and they have a more extended repayment period.
Using FHA Financing
All thanks to the Federal Housing Administration, you can now be able to finance your HVAC system. The FHA has a program of giving out home improvement loans. The program is called Powersaver Loan Program. HVAC financing qualifies for financing under this category.
With the Powersaver Program, you can access the loans without using your house as security. To qualify for participation in this program, you must have home equity.
Financing Using Credit Card
How high is your credit score? If you have a high credit score, you can use it to pay for your HVAC system. This method, however, is more suitable for individuals who plan to make a quick repayment. On the other hand, this is an expensive method if you will take longer to make repayment. The interest rates accrued usually are high.
Utility Company Financing
Some power companies have programs in place for asset financing. Through this program, customers can acquire HVAC financing and repay through their monthly electricity bill. This type of funding proves to be efficient and cost-effective.
The loan attracts lower interest rates. The rates range between 0% and 6.5%, depending on the amount in question. If you choose energy-efficient systems, you can enjoy close to zero interest rate.
Bottom Line
Acquiring a new or replacing an existing HVAC system can be expensive. However, with current HVAC financing methods, the load can be taken off your shoulders. These methods are easily accessible. Some asset financing options have a simple application and faster approval method.
Further, with most of these programs, you can enjoy flexible repayment period. So take your time, consider your situation and budget, and then choose a method most suitable for you. Now that you are in the know make the right call.
