Is HVAC Financing Right for You?
Your HVAC system is a big component of your home. In the bitter cold of winter or the heat of summer, your HVAC system can mean the difference between a comfortable environment and an unbearable one.
It’s a big investment that can pay off in energy savings, but it’s not always easy to pay for. Fortunately, you have options to finance your purchase and make that home upgrade more manageable.
Find out more about HVAC financing for your new home upgrade.
What Are HVAC Loans?
HVAC loans are like car loans or personal loans in that you can finance a large purchase and pay it off in monthly installments. The loan terms may vary, but your purchase is divided into monthly payments plus interest.
If you’re on a budget but need an HVAC system, getting an HVAC loan is a good way to get the system you need, when you need it, without waiting until you can save. Your ability to borrow depends on your credit score, however. If you have a strong credit score, it’s generally easier to get a favorable loan.
Here are your options for HVAC financing:
HVAC Company Financing
One of the most convenient options is to get an HVAC loan through your HVAC company. Reputable companies, such as Proskill Services, offer competitive HVAC loans to give you access to the system that works best for your home and budget.
Our financial specialists can go over your options for personalized payment plans with affordable monthly payments to help you get your HVAC system. Even if you want to buy your system upfront, it’s worth considering what deals or promotions are available for financing.
Bank loans are a common option for homeowners looking to make an upgrade. If you work with the same bank that provides your mortgage, car loan, or past personal loans, it’s often an easy and comfortable option.
There are disadvantages to working with a bank for a loan, such as:
- High interest rates
- Long wait times for approval
- A stringent application process
Credit Union Financing
Credit unions are similar to banks, but the loans are often more favorable. These loans come with lower interest rates, leading to a lower overall price for your HVAC system. If you’re already a member, it’s often easier to get a loan because the credit union will consider your entire credit history – not just your credit score.
If you’re not a member of a local credit union, the process to find one and become a member can be time consuming. The application process to become a member is more difficult that obtaining a loan once you’re part of the credit union.
Government FHA Title 1 Loans
Government Federal Housing Association (FHA) Title 1 loans are designed to help homeowners with home upgrades and improvements. You can apply for a loan up to $7,500 without collateral, so you don’t have to worry about using the equity on your home to secure the loan. If this is a good option for you, you can find out more at the FHA website.
What About Credit Cards?
Credit cards are a good option for large purchases, emergencies, or other unexpected expenses. Using a credit card comes with downsides, however, such as high interest rates that can lead to a much higher purchase price and more debt.
If you want to finance your HVAC system with a credit card, look for options with a lower or zero Annual Percentage Rate (APR). Some cards have promotional deal to defer payments or interest, but it’s important to pay attention to when your payments begin. If you can, pay your purchase off before you start making payments or accruing interest.
Key Points to Consider When Taking Out a Loan
It’s important to evaluate your options before choosing a financing plan. Pay attention to:
The APR is the percentage that you’ll pay each year over the total life of the loan. Usually, this information is in the contract for your credit card or loan. Ideally, look for lower APR options to pay less in interest for your purchase.
As you evaluate your loan options, think about the monthly payments and whether they work within your budget. You want to have some money left over after your bills are paid, including the loan, in case things come up.
Shopping around for interest rates and discounts for financing is a time-consuming process, but it’s worth the savings.
In addition to looking for loans, check with your local utility companies to see if there are rebates available for energy-efficient appliance upgrades. Look for information about your local utility companies at the Database of State Incentives for Renewables & Efficiency. There are also tax credits and rebates available through the Inflation Reduction Act (IRA).
Along with interest, there are fees and charges for some lenders, and they can really add up. Make sure to read the fine print and consider all the costs involved in the loan.
The Benefits of HVAC Financing
When you shop for an HVAC system with a reputable HVAC company like Proskill Services, you have options for financing. It’s more convenient to have an HVAC company finance and install your system, and with your energy savings, it’ll practically pay for itself in time.
Proskill Services offers numerous financing options for HVAC upgrades. You can learn more about your financing options by speaking with our financial advisors to come up with a personalized plan.
If you’re ready to upgrade your HVAC system, contact us at Proskill Services to learn more!