An HVAC system is a big home investment, but it’s not always easy to pay for. Fortunately, you have options to make those costs more manageable, including HVAC financing.
Is HVAC financing right for you? Find out more about different ways to finance the cost of an HVAC system.
What Are HVAC Loans?
HVAC loans are a lot like other loans, such as an auto loan. Instead of paying the high upfront cost, you can take out a loan to break up the price into monthly installments that are more manageable.
Loans are helpful for big purchases like an HVAC system, but your ability to get a loan depends on your credit score and history. The higher your score is, the better your rate will be – and the less you’ll pay over the life of the loan.
Check out your options for HVAC financing:
HVAC Company Financing
One of the best options for HVAC loans is the HVAC company itself. Many companies offer financing options, including Sierra Air. You can get the HVAC system that’s ideal for your home, even if your budget is tight, with a competitive loan rate.
Bank Financing
Bank loans are a common option for many people looking to make a big purchase. If you have a mortgage or car loan with that bank, it could be easier to get a loan for your HVAC system.
Banks aren’t without their disadvantages, however, including:
- High interest rates
- A stringent application process
- Long wait times for approval
Credit Union Financing
Credit unions are similar to banks, but there are many advantages to working with a credit union. Loans through credit unions typically have more competitive rates, which saves you money over the cost of your loan. The approval process is not as challenging, since the credit union considers your entire credit history, not just a credit score.
This may not be an option for everyone, though. You must already be a member of a credit union to get a loan. If you’re not, it will take time to check out local credit unions and go through the application process to become a member.
Government FHA Title 1 Loans
A Federal Housing Association (FHA) loan is an option if you don’t want to put up your car or home as collateral. These loans are fixed rate and used for home improvements and repair. You can apply for up to $7,500. If this is a good option for you, learn more at the FHA website.
What About Credit Cards?
Credit cards are a favorite of many people to handle unexpected expenses, financial emergencies, or other large purchases. Similar to a loan, you can pay for a large purchase with a credit card and pay it off in monthly installments.
If you want to use your credit card for an HVAC purchase, rely on cards that have lower interest rates. Look for promotional offers or deals with zero Annual Percentage Rate (APR), which gives you time to pay off your purchase without added interest. Just make sure to read the fine print to understand when you will pay interest, and how much, to be sure you can manage the payments.
Key Points to Consider When Taking Out a Loan
It’s important to compare offers when it comes to loans and financing. Here are some points to consider:
APR
The APR is the percentage that you will pay yearly over the term of your loan. This percentage is included in your contract, so make sure to read it thoroughly before committing.
Monthly Repayments
As you compare loan options, think about your budget and your monthly payment amounts. Make sure they’re affordable with your other bills, otherwise, you could end up with no money left over after your bills are paid.
Discounts
Getting the best interest rates for financing takes some time and effort. It’s best to shop around to see what offers you have and compare them, rather than agreeing to the first loan option you have.
Some local utility companies offer rebates for energy-efficient upgrades, so that’s worth looking into. Look for local deals at the Database of State Incentives for Renewables & Efficiency. You should also check for tax credits or rebates under the Inflation Reduction Act (IRA).
Lender Fees
Lenders charge different fees and additional charges that can add up, so make sure you’re considering all of this information before you take a loan.
The Benefits of HVAC Financing
If you buy an HVAC system through an HVAC company like Sierra Air, you can get some of the most competitive financing options for your new system. This is a big investment, but it will practically pay for itself in energy savings and longevity.
Sierra Air offers a range of financing plans to help you get the best HVAC system for your home. Speak to our advisors to get a personalized payment plan based on your budget.
Ready to shop for HVAC systems? Contact us at Sierra Air to see what we have to offer.
