Should You Finance Your Next AC Unit? 

Some Considerations to Make Your Decision Easier

When it comes to replacing an old air conditioning unit, the average price is between seven to nine thousand dollars. This can be a large order for many homeowners. In the summers of San Antonio, keeping the temperature at a livable range is a matter of necessity. If replacing your unit causes your blood pressure to rise, financing may be a better solution. Here are some considerations if you are looking into financing your next AC Unit.

#1 Interest

In many cities, including San Antonio, there exist low-interest-rate programs specifically geared towards home improvements. While the average interest rate for refinancing an air conditioning unit is between thirteen and fifteen percent, these programs offer qualifying families rates closer to five percent. Programs such as HUD (Housing and Urban Development) provide resources for homeowners seeking to improve and maintain their place of residence. For details, check out the HUD website:  https://www.hud.gov/program_offices/housing/sfh/title/sfixhs.  

#2 Beware of Zero Percent Interest Costs

Many appliance providers will offer a zero-interest rate financing plan. However, these deals often include hidden fees. Don’t forget to read every word of the agreement and fine print. Also, if you are considering applying for a larger loan in the near future, be sure to find out what kind of credit check the lender requires prior to qualifying for a loan. Most zero interest programs will run a very hard and in-depth credit check, which could lower your credit by a few points. This may hurt your chances of receiving a heftier loan in the future. Finally, failing to pay off any amount of the loan within the agreed timeline could end up costing you the entire amount of the original loan. Many of these loans require a complete payback of the original sum, no matter how small the amount left on the loan may be. Even if this is not the case, interest will usually appear the day the financing period expires in amounts as high as thirty percent.

#3 An Investment Worth Making

One of the reasons the federal government helps finance home improvements within the community is a high yield on investment, both for the homeowner and the housing market. Maintaining a home which is updated, functional, and aesthetic will help subsidize a return on the homeowner’s investment, while also guaranteeing they enjoy their residence. Moreover, the value of homes within a market will be maintained, and in the case of wise improvements such as energy-efficient air conditioners, increased. This is a mutually beneficial goal for the residents as well as the San Antonio housing market. 

#4 Safety First

This may be the most obvious statement of the year, but summers in San Antonio are intense. Due to the length and extremity of the heat during much of the year, home safety has become a consideration when investing in air conditioning. In June of 2018, it was reported that over-heating (also known as hyperthermia) resulted in more deaths than all other disaster-related fatalities combined. The elderly are particularly vulnerable. Heat-related illnesses are also considerable, particularly when temperatures exceed 100 degrees for several days in a row. If temperatures do not decrease below eighty degrees at night-time, homes that do not have air conditioning and/or insulation are at risk.

Replacing an air conditioner can help provide comfort, create a reliable return on investment, and guarantee safety to your household. However, be thorough and judicious while deciding on a financing provider. There are resources that will help you finance a new AC unit without hidden fees or interest whiplash. With planning and consideration, you can find a program, and air conditioner, which works well for you for several years to come. 

 

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