Financing A New AC System
How To Finance A Complete AC System For
Your Lawton, OK Home
Your Options To Ensure Your Home Is Cool
If your Lawton, OK, home’s AC system is past its prime – you’re in for a hot, humid, and uncomfortable time. If you’re constantly struggling to cool your home, it might be time for a replacement. However, due to the price, this may seem like an impossible task. The good news is that there are plenty of options available to finance a complete AC system.
New air conditioning systems aren’t cheap. On average, homeowners spend anywhere from $8,000 to over $12,000 to replace their entire system. However, ignoring the issue can cause you more harm in the long run. The price of an AC unit can be offset by greater energy efficiency, which over time, can help you save on your monthly utility bills.
Let’s take a look at the eight most common ways to finance your replacement HVAC system – so you can get back to enjoying your home all year long.
1. Use Your Home Equity
If your Lawton, OK, home has equity, you could use it to replace your current and inefficient HVAC system. You will find that there are two methods associated with home equity. There is the home equity line of credit and a home equity loan.
A home equity line of credit is similar to a credit card, where you put your home up as collateral. Your payments often last for 20 years with a home equity line of credit. You can use the line of credit until you max it out or when needed.
Home equity loans are very similar, but you get a lump sum of money given to you for your project. You start making payments on it as soon as you receive the loan.
Both options are often viewed as second mortgages on your home since they both use your home as collateral. Default on either, and you could find yourself in a tense situation.
2. Get A Personal Loan
A personal loan often offers a low-interest rate and manageable monthly payments until it is paid off. The key to getting a personal loan that fits your requirements is your credit rating, and the bank or credit union you use can make a difference in your repayment terms.
3. Cash-Out Refinance
A cash-out refinance option is for those who owe less on their home than its current market value.
This option also involves refinancing and can help you secure a lower interest rate than the one you are currently paying. You’ll still need to pay closing costs on the refinance, which can be expensive.
You should only consider refinancing if you can get a lower interest rate than what you are currently paying.
4. Use Your Credit Card
If you have a credit card with great rates or rewards, you could always use it to finance your complete AC system. However, pay careful attention to the terms and conditions of your card and how long you’ll have to pay.
Many people shop around for a new credit card to pay for a complete AC system for their home that offers no interest if paid in full during a specific time frame to ensure they are paying less interest.
5. Dip Into Your Savings
If you have enough savings, then replacing your AC system could be one of those rainy-day items that warrants tapping into your account. However, many people would prefer to keep their savings intact.
This reluctance is understandable, given you never know what may happen later – or if you’ll need your savings down the road. For many people, the best option would be to finance half of the complete AC systems replacement with their savings and fund the other half with another option from our list.
6. HVAC Company Financing
One option readily available to many people is to opt for financing through their HVAC installation company. Most companies have partnerships with trusted lenders or programs.
These programs make it easier for customers to get the HVAC system they need at terms they can afford.
You may even find that they offer better terms than a credit card or personal loan. The added benefit of this option is that your HVAC technician will have the funds immediately to get your Lawton, OK, home cool as soon as possible.
7. Borrow From Your Retirement
Many people borrow from retirement to finance a big purchase – like a new HVAC system or home remodel. However, many consider this as a last resort due to fees, interest, and the fear of emptying their savings.
Remember, if you borrow from your retirement, you can be penalized for it during tax time, depending on your retirement fund type.
8. Government Programs
Government programs are meant to help homeowners ensure their HVAC system is running as it should be. Often, if a simple repair doesn’t suffice, these programs will help homeowners with a full replacement. These programs are usually on a first-come, first-served basis – and you must meet several requirements to qualify.
Remember, it can take a while to get approved for any of these types of assistance programs. They often put a lien on your home deed for five years, but it is removed after that period.
The government programs are not only on the federal level but the state level as well. Talk with your installation partner for recommendations on the process. Government funding could be worth looking into if you qualify and have no other funding sources available.
Don’t forget that if you replace your HVAC system with something more energy efficient, you can often deduct some of the expense from your taxes. The details of the deduction vary according to whatever government rules are in place at the time of filing.
Free Quotes For Your Lawton, OK, HVAC Replacement
If your Lawton, OK, home needs complete AC systems installed, Robinson Air has you covered. We offer flexible financing options to make replacement easy – so you don’t have to suffer through another season of miserable Oklahoma heat.
Contact Robinson Air today at 580-699-5760 for a free quote!