Getting a new HVAC system can be a large expense that you might not be able to afford at the time. This is why you need to look at the financing options that are available to you. It is important that you choose a financing system that meets your needs and that you can keep up with.
Home Equity Financing
If the market value of your home is more than the balance that you owe on the mortgage, you have equity in your home. You can use this to help pay for your new HVAC system. This type of financing will generally come with lower rates than other financing options because it is secured by the value of your home.
This type of financing is usually called a second mortgage or a home equity loan. You will be able to get a lump sum to pay for the HVAC system which you pay full interest on from the start. When looking at this option, you will have to pay close attention to the costs and fees associated with this.
A Personal Loan
There are a lot of people who turn to personal loans to finance their new HVAC. It is important to note that most personal loans are unsecured which means that you will not risk any assets when getting this loan. These types of loans will usually have a term of 36 to 60 months, but you can get some shorter terms.
The interest rate that you pay on these loans will vary depending on the lender and the terms. There are also a number of fees that you need to look out for. A good lender will be upfront about the fees and costs that you face.
Using A Credit Card
If you have a credit card with a very high limit, you could use it to fund the purchase of your new HVAC system. This is only a good idea if you know that you will be able to pay off the balance on the card quickly. The interest rates on these balances will be higher than with other funding options and you need to consider this.
If you are not going to be able to pay the balance off quickly, this financing option will be very expensive. You could also look at getting a new credit card with lower interest rates, but you do need to be careful. Not paying the balance or defaulting on the payment will affect your credit score.
The Manufacturer’s Financing Program
There are some HVAC manufacturer’s that offer a financing program you can take advantage of. These programs are generally personal loans that are offered by the manufacturer or the retailer. You will need to look at the terms of these programs as they vary depending on the manufacturer.
There are a few methods to finance your new HVAC system. If you have equity in your home, you can look at a home equity loan. You could also consider a personal loan or the manufacturer’s financing program. It is also possible to use a credit card, but this can be an expensive option.