If you need a new HVAC system but you don’t have to money to pay for one all at once, there are several HVAC financing options that are available. One of the most popular is a rent-to-own option. Often, this comes with lower monthly payments so you can have the benefit of a new system without stretching your budget too thin. Before you sign a contract, here are some things to keep in mind:
- You will pay more over the length of the loan: As with most loans, you’ll end up paying more than the original price of the unit over the length of the term. Many people understand and accept this because the monthly payments are low enough for them to handle it financially.
- Ask about early payouts: Also called “Open Agreement,” the clause allows for paying off the loan early or making extra payments without penalty.
- Read the contract carefully: Make sure you understand how long the length of the term is for (most common are 7, 10 and 15-year terms), how much each monthly payment will be and if there will be a lump sum amount owing at the end of the term.
- Include a transferable clause: If you sell your home before the term is up, a transferable clause allows the new homeowners to take over your payments.
- Your credit rating may play a role in your payment options: Some finance companies rely on your credit score, while others rely on other financial information like your salary and payment history of utility bills, etc. Your monthly payment may depend on several different financial factors.
Of course, the type of HVAC system you select will also have an impact on your monthly payment. A top-of-the-line system will cost more obviously; and energy rating will also impact the price of your system. Keep in mind that technology is ever-changing and systems are becoming more energy efficient each year. You don’t want to get locked into a contract for 15 years if you are going to want to buy a new unit in 10.
No matter where you live across the country, an HVAC system is a necessity. Even California and Texas have cool evenings where heat will be a comfort; and New York and other northern states have hot summers that need cooling off. You want your system to be reliable and dependable when you need it most. HVAC financing options can help keep you comfortable in every season.
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