If you’re ready for a new heating and cooling system or facing an expensive HVAC repair bill, finding the money to pay can be a struggle. Credit cards often come with a hefty interest rate, and bank loans aren’t always the easiest to get.
But there are options to help you upgrade your home. Let’s look at the financing options available, including HVAC finance, to help you stay within budget.
What are HVAC Loans?
HVAC loans are similar to loans you’d take out to buy a car or make home improvements. Instead of paying one lump sum for a new HVAC system, you spread the costs over several months or years. The amount you can borrow depends on your credit score – the higher your credit score, the more likely you’ll be approved for a loan.
There are several loan types available. Look at each in detail to find out which best matches your financial situation.
HVAC Company Financing
Paying for your new HVAC system through your HVAC company offers a hassle-free convenient way to cover the costs. Most HVAC businesses, including Adeedo, offer competitive rates suitable for most budgets.
Bank Financing
Some households head straight to the bank when it’s time for a loan. It makes sense, especially if you already have a mortgage with a bank or have successfully paid back bank loans. However, the downsides are:
- A strict application process with lots of paperwork
- Long waiting times for approval
- Higher interest rates
Credit Union Financing
Credit union financing often comes with lower interest rates which will help you pay less money overall. Additionally, credit unions are often more flexible with their lending criteria, considering factors such as employment history and community involvement beyond just a credit score.
But not everyone is eligible for a credit union loan. You must be a member. Searching for an appropriate union and going through the application process takes time.
Government FHA Title 1 Loans
If you want to avoid using the equity in your home to secure a loan, these Government loans may be your best way forward. You can apply for a loan for up to $7500 without security.
Find out more from the Federal Housing Association website.
What About Credit Cards?
For some people, a credit card could be an alternative option. However, it’s easy to fall into credit card debt, so consider these points before taking out a credit card loan:
- Look for cards with low or zero APR finance terms. It’s very easy to fall into increasing debt when trying to pay back interest on top of a credit card loan.
- Remember to check when low rates or zero-interest promotions end. You don’t want to get stuck with an unmanageable payment penalty.
Key Points to Consider When Taking Out a Loan
It’s worth bearing these details in mind when looking at the various finance options available.
APR
The Annual Percentage Rate (APR) refers to the amount of interest you’ll pay back over a year. It’s listed on every loan contract. For lower payments, look for a lower APR.
Monthly Repayments
When factoring in a loan, think about the other monthly payments you already have coming out of your budget. For example, can you afford to take on another loan? Factor in having money left over at the end of the month in case you encounter any unexpected costs.
Discounts
It’s worth shopping around and researching to find the best financing deals and discounts available. In addition, some local areas and utility companies offer rebates for energy-efficient upgrades. Databases like the Database of State Incentives for Renewables & Efficiency (DSIRE) provide more information. You may also be eligible for rebates or tax credits under the new Inflation Reduction Act.
Lender Fees
Not all fees are the same. So it’s important to compare different lenders to get the best rates and avoid penalty payments.
The Benefits of HVAC Financing
Reputable HVAC companies, like Adeedo, offer financing to help you purchase the best HVAC system for your home. Investing in and upgrading your HVAC pays dividends in the long run through lower energy bills.
Adeedo has various finance plans, and our advisors help you create a personalized financial plan to suit your budget needs. Payment flexibility and agreed payment term options make financing your new HVAC system hassle and stress-free.
Looking for a company you can trust to finance and install your new HVAC system? Contact the Adeedo professionals today and let our team create finance options for your heating and cooling service needs.
