No homeowner wants to hear the words, “It’s time to replace your central heating and cooling system.” But, like weather especially in Florida change is inevitable. No matter its longevity, every heating and cooling system sooner or later must be replaced.However, when that time comes, your savings may not be ready, but Heating and cooling your home or business is something you can't afford to compromise! Why dip into savings you may have set aside for another purpose or add to an existing credit card balance or even consider a home equity line of credit? When your local HVAC experts such as Dayton Heating and Air can quickly deliver flexible financing solutions and competitive interest rates when you need them most.
It Is Smart Money Management
What if you could tailor your indoor comfort purchase to your monthly household budget and energy efficiency needs at the same time? That is where financing can help keep you and your wallet comfortable! HVAC financing helps spread the cost of new equipment over a predetermined amount of time. Why dip into savings you may have earmarked for another purpose, add to an existing credit card balance or even consider a home equity line of credit when you have another option? HVAC Financing allows you to overcome the cash anxiety that often comes with upgrading or replacing your home comfort equipment. By financing your new purchase, you can break up payments into monthly installments, leaving your cash available for something you cannot finance. Additionally, HVAC financing can often cover the cost of an extended service plan, adding additional value to your investment. Extended service plans minimize additional out of pocket expenses you face for the term of the service plan, effectively extending your new systems’ parts or labor warranty.
Don’t lose your cool over the initial cost or freeze up at the suggestion of a new high efficiency rated system. Remember a new home comfort system should be viewed as a long-term investment for your home and your quality of life and should be based on long-term comfort and energy-efficiency. While your frugal urges may tempt you to opt for a base or minimum efficiency system, the least expensive option may not be the most cost effective considering the life cycle of a high efficiency system. Since you may already consider financing, we encourage you to take a moment to consider all the home comfort options your local HVAC expert can offer. In fact, this could be the perfect time to upgrade to a high-efficiency central air conditioner, heat pump, gas furnace or package unit.
So, what is the logic of buying ahead of the curve? You may not be aware of the advantages a modern, high efficiency HVAC system can provide to your family. These recent impactful innovations heating and cooling technology such as variable-speed fans, multi stage compressors, inverter systems and advanced heat exchanger technology have ushered in new heights of HVAC operation that enhances indoor comfort, performance and efficiency. Enhanced indoor comfort and less energy consumption can result in real, tangible returns you can expect from your investment in a high system, especially when compared to your old unit or today’s base-efficiency units. With just a small incremental increase in the monthly financed payment, you could purchase a high-efficiency comfort system that is designed to give you reliable and superior indoor comfort throughout your home, recurring savings on your monthly energy bill and possibly a potential increase in the value of your home. For lasting comfort and energy savings you can see why it why it could be wise to invest in a high-efficiency comfort system with higher performance ratings now, so that you can continue to reap the rewards of your foresight for years to come.
What Do I Need for HVAC Financing Approval?
So, you’re interested in utilizing Financing for your new heating and cooling system, and you might be wondering what’s the next step? Depending on the local contractor’s financing company, amount financed or terms of service, you will need to provide certain personal information and be subject to a credit check. Your local HVAC contactor offering the financing should provide complete information and answer any questions before you make a final decision about financing. Below are some general standards that maybe required to be met for approval. “Each lender differs in what exactly is required for loan approval,” says Erin McCollum, Director of Contractor Services for EGIA. According to McCollum, typical customers who are approved for an HVAC loan may have:
§ “Fair to excellent” credit profiles
§ Debt to income ratio under 50%
§ No recent history of bankruptcies
Common Financing Terminology
§ APR (Annual Percentage Rate) - The interest charged on the loan
§ Debt to Income Ratio - The amount of a borrower's debt divided by their income
§ Zero Interest Loan - A loan that is paid in equal monthly payments over a specific term with an APR of 0%
§ Fixed Interest Rate - A fixed percentage of interest that is paid over the loan term
§ Interest - Payment for the use of money over time or the amount a borrower pays to borrow money from the lender
§ Same-As-Cash Loan- A loan in which no payments need to be made within a specific promotional time period. If the balance is not paid at the end of the promotion period, the borrower usually pays off the interest from the loan start.
§ Sub-Prime Loan - A loan given to a borrower who does not meet the credit requirements for a typical loan. Sub-prime loans have higher interest rates because they finance borrowers who may have a poor credit history, lower income, and high debt to income ratios
§ Term - The time length the loan will run, usually in months or years.
§ Unsecured Loan – A traditional risk-based loan that is given and based on a borrower's credit instead of collateral