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Financing for HVAC
None of us wants to hear those dreaded words: "You need to replace your HVAC system." As with many necessary home improvement projects, there can be sticker shock associated with replacing or upgrading your furnace, air conditioner, ductwork, or even the entire system.
And while it may seem intimidating to deal with some of the higher-end pricing of new energy-efficient HVAC systems, remember your long term goals: comfort, efficiency, and savings (both to your wallet via reduced energy bills, and environmental savings to your carbon footprint or greenhouse gas emissions)! High-efficiency systems can even increase the resale value of your home.
While you have the option to open or add to an existing line of credit on a card, or even take out a home equity loan to avoid depleting your savings, consider HVAC financing. As with all financing, it's important to go over the fine print to make sure you understand your financial responsibility.
Check the interest rates offered (this is the annual percentage rate, or APR, which includes the interest charged on the loan) as well as the terms and length of your repayment. Financed loans are usually repaid in equal monthly payments. Remember that financing may even cover the price of an extended service plan or warranty, which can help offset additional out of pocket expenses down the road, but check with your lender first.
How Do I Get HVAC Financing Approval?
Ask your HVAC contractor which financing company they recommend or partner with, and be sure you find out what personal information you need to provide to qualify for financing. You will likely be required to go through a credit check. Lenders can vary in what is required for financing.
HVAC loan approval can take into consideration the following: your credit rating (lenders will be looking for a credit score from "fair" to "excellent", depending on the lender), where your debt to income ratio lies (your debt to income ratio is your total amount of debt divided by your income), and any bankruptcy or late payment history.
Occasionally you can find 0% APR or no-interest loans, depending on the strength of your credit profile. Sometimes you can also get a promotional period loan. This loan does not require you to make payments during the promotional time period.
Read the promotional details carefully, however - if the balance isn't paid in full after a certain time, you may be required to cover the interest from the start of the promotional period.
Even if you don't have great credit, some lenders offer sub-prime loans. Sub-prime loans will typically have a higher rate of interest.
We have a lot of options for HVAC financing! Once we know what you need for your home, we can go over the opportunities available to you. If you'd like more information on financing your HVAC service or new heating and cooling equipment, give us a call at 937-439-4696 or schedule your free HVAC replacement consultation online with us right from your smartphone or computer.