A new heating and cooling system can take your home to a whole new level of comfort. Investing in a new unit can be costly and is hard to pay off right away. A malfunctioning air conditioner or heating system constitutes an emergency when the temperature outside is extreme. A new HVAC system can be purchased from emergency funds, but how do you manage if you don’t have enough savings? What if you prefer other HVAC financing options?
You may want to consider applying for a personal loan to cover such a significant expense, so you can budget accordingly.
How do HVAC loans work?
HVAC loans are personal loans that you can use to purchase or replace an HVAC system. It is released as a lump sum amount and paid back over a period of two to seven years by fixed monthly installments.
You need to have a good credit score in order to qualify for a personal loan. Low-interest rates and larger loan amounts are offered to qualified borrowers with good credit scores, stable income, and limited other debt.
- Personal loans typically carry a percentage annual rate ranging from 6% to 36%.
- The amount of a loan ranges from $1,000 to $100,000.
- Without affecting your credit score, there are many lenders online who will let you pre-qualify and see terms and HVAC financing rates before applying for a personal loan.
Ensure that the terms of the personal loan are suitable for you. Here is a personal loan calculator that lets you compare loans and estimate the costs.
A sample loan computation:
- Loan amount – $8,000
- Length of loan – Three-year repayment term
- APR – 6.99 to 8.99%
- Estimated monthly payment – $247 to $254
HVAC systems can be financed quickly using a personal loan. Within a few days of approval, most loans are funded. With this financial option, you have the choice of getting an unsecured or a secured loan. Generally, personal loans are offered with fixed interest rates and repayments of 12-60 months or longer. You may be able to get a lower interest rate on a personal loan depending on your credit score. A person with bad credit will find it difficult to get a personal loan if there are even any loan offers at all for unsecured loans.
Advantages:
- The loan amount can be as much as $50,000.
- Low APRs are available to borrowers with strong credit
- It has a fixed interest rate and a monthly payment
It is important to compare financial options when purchasing for home improvement. Consider these factors about personal loans.
- Possible high annual percentage rates. Because most personal loans are unsecured, you may have to pay higher interest rates than if your debt was backed by collateral. The lowest APRs are offered by lenders to borrowers with good credit.
- There will be fees and penalties. Up to 8% of your loan may be charged in origination fees. The costs of these charges are typically used to pay for administration and processing. Below you’ll find a list of lenders who do not charge origination fees.
- Santander
- Marcus by Goldman Sachs® Personal Loan
- LightStream Personal Loan
- SoFi
- Pentagon Federal Credit Union (PenFed)
- The terms of a personal loan may get influenced by your credit score and your financial circumstances. Be sure to check qualifications. People with lots of high-interest debt, little income, or thin credit files may not be approved for a loan. In order to rebuild your credit score, it would be a good idea to take care of your debts first and rebuild your credit score before re-applying.
- Time for funding. Personal loan prequalification, which takes minutes, will be funded the same day you have been approved or within a day.
The interest rate and fees you’re charged determine what you’ll pay for a personal loan. For acquiring a brand new HVAC system, it’s recommended to find the lowest interest rate and lowest fees or no fees at all. Compare the offers accordingly. If you can, pick a personal loan that has no prepayment penalty so that you can pay off your loan early without incurring financial repercussions.
Pacific Aire understands that this year has already been filled with unpleasant moments. Our homes do not need to suffer from uncomfortable summer temperatures due to outdated air conditioning systems. Our goal is to not let finances hold you back so we offer 0% *Financing up to 36 months, or a $2,000 Spring Rebate towards the purchase of an entire HVAC system. Don’t wait for the next heat wave to do this, get a hold of this offer and finish prepping your home and system now.
Visit https://bit.ly/Pac_Aire_AC_Replacement_VenturaCounty or call us at 805-737-2564 to set up an appointment for your new HVAC system today!
CLSB #613652
