There’s no doubt that a new heating or cooling system can be quite costly for the average homeowner. When it becomes time to purchase your new HVAC unit, you may be worried about the cost. Fortunately, there are financing options available to help ease the burden of the upfront system cost.
What Is HVAC Financing?
HVAC financing is much like any other type of financing out there. It involves using an installment loan to pay for the total cost of your new HVAC system over a set term length. Financing the purchase of your new HVAC system can be done through multiple sources, including personal loans, home equity lines of credit, and credit cards. One of the more desirable options for homeowners is to get financing from their HVAC installer.
Who Offers HVAC Financing?
When you get a quote from your HVAC contractor, they will be able to provide you with more precise information on the financing they offer. Typically, the financing comes from a private lender. Some HVAC brand manufacturers will pair up with an exclusive lending partner, where all HVAC contractors offering that brand of system will refer you. Other HVAC providers may have a specific lender that they work with and will refer you to get financing from. HVAC manufacturers and contractors don’t typically offer their own money for financing the purchase of new systems.
A Note on Financing Specifics
When you start to think about HVAC financing, the first thing you likely want to know is what your monthly payment will be. This is going to vary widely depending on a number of different factors, like the upfront cost of your system. The interest rate on your loan will be highly dependent on your credit score and the overall term of your loan. Terms can range anywhere from one year all the way up to five years or more, depending on the specific lender.
Many financing options will come with special rebates or promotional interest rates. For example, you may get a one-year term that is 0% interest, which will give you adequate time to repay your loan without paying interest. Other financing terms may offer a discounted price on the purchase of your unit or money-back to reduce the overall cost of the system. Again, each lender is going to be different from the next in what they offer.
The Top Advantages of Using HVAC Financing
HVAC financing can be an ideal choice for many people who are looking to keep their savings intact. Instead of using your hard-earned emergency funds, you can opt for more convenient financing that you can repay over time. HVAC financing providers will typically record your on-time payment history to credit bureaus, which can greatly help to increase your credit score.
Another benefit of HVAC financing is that it opens the door for many homeowners to afford more costly systems. For example, if you like the prospect of investing in a high-efficiency furnace but don’t have all the funds on hand, financing can be a great way to cover the cost. You can enjoy more options so you can purchase the system that is appropriate for your home without having to worry so much about the upfront cost. Additionally, financing allows you the ability to purchase a new HVAC system when it works best for you. You don’t have to wait until you save up enough money to buy a new system.
What Types of Systems Qualify for HVAC Financing?
All different types of heating and cooling systems qualify for HVAC financing. Furnaces, boilers, air-source heat pumps, ductless mini-split systems, central air conditioning, geothermal heat pumps, packaged systems, zoned systems, radiant heating, and much more. Financing allows you the ability to choose whatever HVAC system is best for your home’s individual needs.
Are There Drawbacks to HVAC Financing?
As with any sort of HVAC financing program, there are going to be some drawbacks that you need to be aware of. First is going to be the interest that you’ll pay on the loan. Unless you qualify for a 0% interest rate and can pay off the installment loan before the end of the introductory period, you’ll end up paying some interest on the loan.
Reliable HVAC Installation Service
Xtreme Heating & Cooling LLC offers reliable HVAC installation service to the Omaha, NE community. We can also help with all your heating, air conditioning, commercial, new construction, remodeling, smart thermostat, geothermal, and indoor air quality needs. Phone our office today to book your next service consultation.
