3 Ways to Finance a New AC System for Your Home

Your old air conditioning unit finally bit the bullet, and now you find yourself in a bit of a financial struggle. After all, new air conditioning systems aren't cheap, and if you don't have a large enough emergency fund set aside, you may have no choice but to finance the cost of the new unit and installation. Fortunately, there are quite a few simple ways to go about financing your new AC, assuming your current one is beyond repair.

Through the Installer

These days, most HVAC companies offer financing to customers with qualifying purchases, such as new AC or furnace replacement. When you have a company come out to give you a quote, ask them about their financing options. Some will even have 0% interest promotional offers for those who qualify, so long as you pay the entire balance off within the allotted time period.

Just be careful if you opt for such a loan, however, as interest rates can be very high if you make a late payment or miss a payment entirely. Consider setting up an automatic payment deduction from your bank account to ensure you don't forget.

Through Your State

Some states have energy efficiency loan programs specifically designed to help homeowners obtain the funds they need for new, energy-efficient HVAC systems. Generally, eligibility for this type of loan is income-based, with those falling below a state-determined income bracket typically being eligible for an unsecured loan with a modest and fixed interest rate. Check with your state to see if they offer any similar programs to help finance your new AC.

Through Your Home Equity

Finally, if you have less-than-ideal credit or cannot otherwise secure financing through your HVAC company or state government, then you might want to consider borrowing against the equity you have built up in your home. Oftentimes, you can secure a pretty low interest rate on a home equity loan, since you're basically putting your home up as collateral, thus making you a lower risk in the eyes of your lender.

As you can see, there are many ways to go about financing a new AC unit for your home. And while this isn't an exhaustive list of options, it's a good way to get started when it comes to securing the cash you need to restore comfort in your home. Learn more tips by consulting resources like Arlington Heating & Air Conditioning.