A high interest rate loan would cost you more in the end, and a HELOC (home equity line of credit) could prevent you from selling your home
My sister Jen has been living in her home for about 6 years now. She is a single mom who works hard to make sure her child has a comfortable life. After her divorce, her ex-husband moved out of state which means Jen is primarily responsible for her daughter’s wellbeing. About a year ago, Jen’s HVAC system broke down and unfortunately, it could not be fixed. The unit was old and needed to be replaced for a while, but my sister didn’t have the extra money to purchase a new HVAC system. I offered to help but she declined as she wanted to figure it out on her own. Well, she was able to find a way to get a new unit without having to spend all the upfront cost. She was able to finance a new unit with her HVAC provider. At first, I wasn’t sure if that was the best option for Jen, but as with anything there are pros and cons to financing. One advantage to financing is that you avoid paying the full price for a new system which could be up to $12,000. Another advantage is you will receive a high energy efficient unit, which will mean some cost saving on your energy bill. So over time, the new unit would be paying for itself. While there are some benefits, financing can be problematic if you’re not able to secure the right loan. A high interest rate loan would cost you more in the end, and a HELOC (home equity line of credit) could prevent you from selling your home. So, it’s just best to weigh your options when it comes to buying a new HVAC system.
Air conditioning system