Financing a New HVAC System? 5 Things to Consider

An HVAC system can run anywhere from $3,000 to $10,000 depending on the size of your home. Not many people have that amount of money just lying around.

If you need to install a new HVAC system, you may need to finance one. You can finance an HVAC system either through an HVAC financing company or other alternatives, such as a home equity loan. Though it can seem like a big bill, you might not want to delay.

1. HVAC Systems Saves You Money

A new HVAC system is going to save you money long-term. Though you may pay $200 a month on your HVAC bill, a new HVAC system might be able to save you that money. The older your HVAC system is currently, the more a new HVAC system is going to be able to save you over time.

On the other hand, if you find that you really don’t spend all that much on your electricity or gas bills, you may want to save up for an HVAC system and put it off. It really depends on your home and your utility bills.

2. HVAC Systems Improve Your Home Value

When you install a new HVAC system, you improve your home’s value. Buyers interested in purchasing a new home want a home that has new appliances, which will save them from having to install new ones themselves.

If you’re thinking about selling your home any time soon, you may end up needing to install a new HVAC system regardless. If you do it now, you ensure that you get to benefit from it before your sale.

3. HVAC Systems Have Financing Options

Many people need to finance an HVAC system, and because of that, a lot of different options exist for financing. From home equity loans to home improvement loans, you should be able to find at least one financing option that will work for you.

That being said, not all of the financing options are made equal. An HVAC company or HVAC manufacturer are usually the best options. After that, the next best option is a home equity loan. Only after those avenues have been exhausted should you consider personal loans or credit cards.

4. HVAC Systems Require Relatively Good Credit

Though financing options exist for those with bad credit, you’ll normally need a credit score of at least fair to qualify for the reasonable interest rates.

If you have a credit score below 650, you’ll likely need to pay more for the money. These interest rates can be significant, sometimes as much as a credit card. Thus, if you don’t have the credit history to finance an HVAC system, you should think twice being doing so.

5. HVAC Systems Have Tax Credits

When you improve your home in an energy-efficient way, you can often benefit from tax credits and tax deductions associated with that expense. You take on the entirety of the expense with an HVAC loan, so you’ll at least be able to deduct some money from your taxes for your home improvement.

Though the credits and deductions may not cover all of the improvement, they will at least cover a chunk of it. For many people, their tax rate may rest anywhere between 25 percent to 35 percent of their income.

Are you thinking about financing a system? Before you go any further, you need to know exactly how much a system will cost. Often, the best way to get financing is to go directly through your HVAC company. To take your first step towards a more comfortable home, contact HELP Plumbing, Heating, Cooling and Electric.