A new furnace or heat pump can put a dent in your budget. Replacements cost between $5,000 to $12,000 or more, depending on the specific unit and the size of your house. What if you don’t happen to have several thousands sitting in your bank account? Heating Specialties of Fairton, N.J., can help you make sense of the available financing options, including our own financing program. We have the inside scoop on how to pay for that HVAC upgrade.
Time for a replacement
If you’re not able to pay out-of-pocket for your new HVAC system, you’re not alone. The typical American has about $1,200 in a saving account. Even those with bigger savings may have earmarked the money for other expenses, like an upcoming surgery or a child’s education. But, living without a good HVAC system can rob you of your comfort, at best, and can be downright dangerous if you’re relying on alternate sources of heat, like space heaters or an open fire. Continued repairs may also be an ineffective solution, especially if you’re paying more to fix an HVAC system than you would to replace it.
Financing options
Let’s look at some effective financing solutions for homeowners who need a little help paying for their upgraded systems:
A home equity loan lets you borrow against your home’s equity to pay for the new HVAC system. You’ll be charged interest and can pay it back over a specific period. Because you’re borrowing against your home’s value, you may qualify for a lower interest rate, and there can be some tax advantages. However, the value of your home must be well above what you owe on it, and you run the risk of losing your home if you cannot repay the loan.
Credit cards may seem like the obvious solution, especially if you’re used to pulling out plastic for every purchase. Most credit cards carry a higher interest rate, however, and aren’t practical for purchases that will be paid off over several months.
A personal loan can be a good option if you have a friend or relative who is willing to lend you the money and let you pay it back over time. This option may sound appealing, but you need to weigh the convenience over the future of the relationship, especially if you are unable to make regular payments.
A bank loan may not require home equity, but it also can be limited to shorter payback periods and higher interest rates.
Government grants can be an option for homeowners who meet specific income requirements. Under the 2022 Inflation Reduction Act, you may qualify for credits or rebates to help you pay for a new HVAC system.
What if I don’t know where to start?
The whole lending process can be overwhelming. You may be tempted to start applying for different loans to see how you qualify, but those multiple inquiries can negatively affect your credit score. At Heating Specialties, we want to make things easy on our customers. We’ve teamed up with Ally, an industry leader in financing solutions for home improvements and replacements. We can offer fast and fair options that fit your budget. And, you can apply online to get started.
Don’t let financing fears prevent you from enjoying the comfort of your home. To find out more about our flexible financing options, call us at 1-866-Y-BE-COLD or apply online anytime!