Replacing your home’s heating or cooling equipment is a major investment. It’s also something that can pay off in certain situations by ensuring your home is more comfortable and lowering your energy bills. If you think you may sell your house in the next few years, replacing your HVAC system is a great way to boost the value of your home. When it comes time for a new HVAC installation, one option you may want to consider is financing the installation of a new heating system or AC. While HVAC financing isn’t right for everyone, it can provide some great benefits that you should consider.

How HVAC Financing Works

Financing a new furnace, AC, or any other type of HVAC unit is fairly similar to financing any other major purchase, such as a new car. The first step is to apply with whichever financial service provider the HVAC company will be performing the installation works with. If you’re approved based on your credit rating, you can then select your financing option and set up a monthly payment schedule.

At Healthy Home Heating & Cooling LLC, we’ve partnered with Synchrony Bank, one of the country’s leading consumer financial services, to offer a range of financing options to approved customers. If you’re approved, you can receive a Home Design credit card that you can charge some or all the installation costs to. You can also receive an unsecured, open line of credit that you can use for other future purchases or investments in your home.

Benefits of Financing Your HVAC Installation

HVAC financing can be a great choice for several different reasons. One time when financing can be especially helpful is if you’re facing an emergency. This includes your furnace failing in the middle of winter, and you need to replace it immediately. Installing an AC unit or furnace is relatively costly no matter what. That’s why people usually try to start budgeting ahead of time when they know they have an HVAC unit that’s near the end of its life.

Unfortunately, it’s not always possible to plan for a replacement. Sometimes, HVAC units can give out prematurely and fail suddenly. This is where financing can be convenient. It will allow you to get the new unit installed immediately without having to figure out how you’re going to pay for everything upfront. It also means you won’t have to break your budget and put a massive strain on your finances. Instead, you can spread the cost out over a longer period of time and make manageable monthly payments.

Another reason why many people choose to finance their HVAC installation is that it can allow you to get a much higher-quality, more energy-efficient unit than you could potentially afford if you had to pay for the entire installation cost upfront. Energy efficiency is always one of the most important factors to think about when choosing any new HVAC unit. That’s obviously because the more efficient the unit is, the less you’ll have to pay each month to heat or cool your home.

The drawback to financing the installation is that, depending on the terms and the option you chose, you may be charged interest each month on the remaining principal until you’ve finally paid the total amount off. That means you could end up paying more if you financed the installation than you would have if you paid everything upfront. The amount you could potentially save on energy costs through financing a much more efficient unit can offset or completely cancel out the extra money you must pay in interest. This is the case if you choose a shorter-term loan and can fully pay off the unit fairly quickly.

Another way you can save is if you use financing to install a unit that qualifies for a federal tax credit. There is currently a $600 tax credit available when installing a central AC or furnace that meets a certain energy-efficiency requirement. And there is a $1,200 credit for installing a qualifying heat pump. You may also be eligible for other incentives that can help you save and further offset the interest you must pay when financing the installation.

Tips for Deciding If You Should Finance an Immediate HVAC Replacement

One thing to consider if you’re thinking about an HVAC replacement and trying to decide whether to finance it is the age of your current unit. HVAC units like furnaces, air conditioners, and heat pumps have an average life expectancy of approximately 15 years. If you have a unit that’s only 12 or so years old and it still works efficiently, choosing to finance a replacement right now may not be the best choice. Instead, it may be better to wait a year or two before replacing it and try to start planning and saving up some additional money for the replacement. That way, when the time comes to replace the unit, you may be able to pay the entire cost upfront. You don’t have to finance the installation and pay extra in interest charges. Even if you can’t save up the full amount, the amount you managed to save means you either won’t have to take out as big of a loan or you’ll be able to pay the unit off faster and avoid paying as much in interest.

If you have an older unit that isn’t working effectively or isn’t very energy efficient, it can make sense to use financing and replace it now. Let’s say that you have an older furnace that runs quite a bit and only has an energy-efficiency rating of 80 AFUE. If you were to install a new 95 AFUE furnace in your Wisconsin home, you could potentially cut your heating bills in half and save at least a few hundred dollars a year. That means your new furnace could easily end up paying for itself at some point even if you do have to pay a bit more in interest because you chose to finance the installation. The new unit will also be under warranty in case any issues arise because of a defective component. It will be far less likely to need repairs in the coming years than your old furnace as well, which can help you save even more.

Our De Pere HVAC Company

At Healthy Home Heating & Cooling LLC, we’re proud to be one of the top heating and cooling companies in De Pere, WI, and the Green Bay area. Our company was founded in 2005, and we have a team of certified HVAC technicians with decades of experience. We carry a large selection of quality, highly efficient furnaces, air conditioners, heat pumps, boilers, and ductless mini-split systems from trusted brands like Rheem and Fujitsu. No matter what type of unit you’re looking for, we have options that will work for your home and can help you decide which one is best. Our technicians can also assist when you need maintenance or any repairs, no matter what type, brand, and model your HVAC unit is.

To set up a consultation and get help determining if now is the right time for an HVAC replacement, contact Healthy Home Heating & Cooling LLC in De Pere today.

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