Financing new central AC advice?

[CB3UK]

What are yalls thoughts on the best route to go for this? My units are original to my house (2003) been on the fritz. We have a home warranty deal but anything beyond cheap repairs they are a joke. Id rather take our monthly fee to them and apply it to a payment for brand new more efficient HVAC.

Problem is I just refi'd the house. So home equity loan is out of the question. Without going down that rabbit hole, yes I realize adding the needed money into the refi from equity would have solved this. Wasn't an option.

Anyway, is there some personal bank loan with a low interest rate over a reasonably long term. Im just starting out on the career totem pole not as financially establishes as you blue hairs. Is financing through the HVAC company generally reasonable? Is there some other avenue out there I should look into.

At this point, its going to be a total replacement, except for duct work which is all totally fine. The new units use puron so I assume the furnaces will have to be changed out as well too. Might as well do all of it at once.

Any helpful advice is much appreciated.

 

[jameslee32]

It's hard to stop a Trane.

 

[jtrue28]

We searched online for introductory rate (0%) credit cards with the longest term. We managed to get a Wells Fargo MC with 0% for 18 months. I would research that route.

Your only issue will be to make sure you get a high enough credit limit to take advantage of it.

 

[jameslee32]

What are yalls thoughts on the best route to go for this? My units are original to my house (2003) been on the fritz. We have a home warranty deal but anything beyond cheap repairs they are a joke. Id rather take our monthly fee to them and apply it to a payment for brand new more efficient HVAC.

Problem is I just refi'd the house. So home equity loan is out of the question. Without going down that rabbit hole, yes I realize adding the needed money into the refi from equity would have solved this. Wasn't an option.

Anyway, is there some personal bank loan with a low interest rate over a reasonably long term. Im just starting out on the career totem pole not as financially establishes as you blue hairs. Is financing through the HVAC company generally reasonable? Is there some other avenue out there I should look into.

At this point, its going to be a total replacement, except for duct work which is all totally fine. The new units use puron so I assume the furnaces will have to be changed out as well too. Might as well do all of it at once.

Any helpful advice is much appreciated.

Seriously though, picking the right contractor is as important as anything whether repairing or installing.

 

[anthonys735]

We use either Wells Fargo (12 Months no interest or 9.9% standard revolving credit) or HCS(Ally) with a 9.9% installment loan. I feel like the installment loans are much safer and consumer friendly. Any gimmick loan has trap doors built in. If you need assistance shoot me an email [email protected]

 

[CB3UK]

Thanks guys. Keep all available ideas coming. Im in no position to pay off such a loan on the fast track. Im young and just barely established at my job, meaning there isnt exactly a proliferation or discretionary money beyond my budget. I agree about the contractors, so I understand that and vetting them, estimates, etc. Im knowledgeable about all of that. Really this is more of a financial query than anything. What avenue is available to me (credit around 700) for the longest term with lowest interest. I get scheduled raises every 46 weeks so as more income becomes available the more Ill toss at it, but I need the extra breathing room at present for other home reno things. Ive got about 20 irons in the fire presently and dealing with this is the last thing I want on my plate. Home warranty served its purpose but its time to get this done correctly and do a full replacement.

 

[anthonys735]

Give me a shout on email and I'll walk you through it.

 

[BlueVelvetFog]

Fayette HVAC Haircare and Tire Center. Ask for Large Marge

 

[jtrue28]

Also, Puron has nothing to do with a "furnace". If you have a heat pump, then that's different and you would have to change both regardless. How many ton system are you looking at?

 

[ukalum1988]

Thanks guys. Keep all available ideas coming. Im in no position to pay off such a loan on the fast track. Im young and just barely established at my job, meaning there isnt exactly a proliferation or discretionary money beyond my budget. I agree about the contractors, so I understand that and vetting them, estimates, etc. Im knowledgeable about all of that. Really this is more of a financial query than anything. What avenue is available to me (credit around 700) for the longest term with lowest interest. I get scheduled raises every 46 weeks so as more income becomes available the more Ill toss at it, but I need the extra breathing room at present for other home reno things. Ive got about 20 irons in the fire presently and dealing with this is the last thing I want on my plate. Home warranty served its purpose but its time to get this done correctly and do a full replacement.

In your OP, you mentioned you had already tapped out your Home Equity Line of Credit (HELOC)??

I opened a HELOC back in 2015 or so, and within 1.5 years had maxed it out. Then, back about three months ago I discovered a leak in my roof. I patched it and it stopped the leak but I realized I had to the bite the bullet and get a new roof. I got about 6 estimates with three of them clustered in the $15-17K range.

Lucky for me, with my credit and income, I was able to essentially extend and refinance my HELOC with the same back. My old HELOC was closed out and rolled over into a new account with an extended credit line. As a promotional deal, for 12 months the interest rate is only 0.24%, after which it goes to 3.99% for up to 20 year. I'm going to have my roof replaced in the next two weeks or so.

If a HELOC refinance / extension isn't an option for you, then another option would be to tap into and a get a loan from your 401K account if you have one. I've had to do this years ago, and I would recommend it for a compelling high-dollar need such as a roof or new HVAC. Financial gurus always say not to take a 401K loan, but it's better to pay yourself back at 5 - 6% interest than to go with a 10+% loan from other sources.

Agree with other posters; the right contractor is key. Ask your family, friends, co-workers, etc. for recommendations, and get at least 3 estimates.

Good luck with your project.

 

[CB3UK]

In your OP, you mentioned you had already tapped out your Home Equity Line of Credit (HELOC)??

I opened a HELOC back in 2015 or so, and within 1.5 years had maxed it out. Then, back about three months ago I discovered a leak in my roof. I patched it and it stopped the leak but I realized I had to the bite the bullet and get a new roof. I got about 6 estimates with three of them clustered in the $15-17K range.

Lucky for me, with my credit and income, I was able to essentially extend and refinance my HELOC with the same back. My old HELOC was closed out and rolled over into a new account with an extended credit line. As a promotional deal, for 12 months the interest rate is only 0.24%, after which it goes to 3.99% for up to 20 year. I'm going to have my roof replaced in the next two weeks or so.

If a HELOC refinance / extension isn't an option for you, then another option would be to tap into and a get a loan from your 401K account if you have one. I've had to do this years ago, and I would recommend it for a compelling high-dollar need such as a roof or new HVAC. Financial gurus always say not to take a 401K loan, but it's better to pay yourself back at 5 - 6% interest than to go with a 10+% loan from other sources.

Agree with other posters; the right contractor is key. Ask your family, friends, co-workers, etc. for recommendations, and get at least 3 estimates.

Good luck with your project.

This is the route I want to go.

When I say it isnt an option, I mean I refi'd my house for 30 and it included buyout payment of ex fiance so I can own house outright. It put me on threshold for conventional loan qualifying v FHA which obviously means morg ins payment. Tacking this money on then would have pushed me over said threshold and I would have been out more $ per month v what Im currently doing.

I say all of that to say I closed in May and after the one month grace period, my first payment on new mortgage is literally due next week. So I have ZERO equity currently.

So with all of that said, is HELOC still viable? My appraised value is about 80K more than my mortgage. Dont know if that helps things at all. Im just tired of trying to polish a turd and kicking the can down the road with this warranty company. I know Ill have to take them to small claims court or file a claim with AG Cameron's office to get it replaced like it should. As always in life, you get whay you pay for.

 

[anthonys735]

Home Warranty companies ran off any decent contractor because of their BS. So you get that with them.

 

[55wildcat]

Home Warranty companies ran off any decent contractor because of their BS. So you get that with them.

I have american home shield and was very happy with the a/c company they sent to repair my unit...Looks like you're trying to make a sale for Bryant...

 

[anthonys735]

I have american home shield and was very happy with the a/c company they sent to repair my unit...Looks like you're trying to make a sale for Bryant...

You're in the minority then as most are the same experience as OP. I've helped people around this board use my competitors several times, so I really don't care, and I have no idea where the guy lives. I just happen to have pretty specific knowledge, based on the guys questions, considering I deal with HVAC financing everyday. But if you have anything else more productive to share, by all means let us know.

 

[55wildcat]

You're in the minority then as most are the same experience as OP. I've helped people around this board use my competitors several times so I really don't care and I have no idea where the guy lives. I just happen to have pretty specific knowledge based on the guys questions considering I deal with HVAC financing everyday. But if you have anything else more productive to share, by all means let us know.

It’s for sure not cutting down another company to drum up business. As a matter of fact just yesterday my home warranty replaced my pool heater. 75.00 is what it cost me Very very happy with my home warranty

 

[anthonys735]

He mentioned the issues, not me. Jesus, dude.

I'm told they are better for electrical and plumbing.

Let's start a poll and see if I'm full of **** and just trying to "drum up busines." (I'm good)

 

[55wildcat]

I’m telling you my home warranty company is awesome and have replaced or repaired anything I submitted for. Your saying they are not and feed people ********. Maybe so but not this company to me. And my name is not Jesus dude

 

[anthonys735]

K

 

[55wildcat]

K[/QUOTE

K back fellow cat fan

 

[Baller Cal]

What are yalls thoughts on the best route to go for this? My units are original to my house (2003) been on the fritz. We have a home warranty deal but anything beyond cheap repairs they are a joke. Id rather take our monthly fee to them and apply it to a payment for brand new more efficient HVAC.

Problem is I just refi'd the house. So home equity loan is out of the question. Without going down that rabbit hole, yes I realize adding the needed money into the refi from equity would have solved this. Wasn't an option.

Anyway, is there some personal bank loan with a low interest rate over a reasonably long term. Im just starting out on the career totem pole not as financially establishes as you blue hairs. Is financing through the HVAC company generally reasonable? Is there some other avenue out there I should look into.

At this point, its going to be a total replacement, except for duct work which is all totally fine. The new units use puron so I assume the furnaces will have to be changed out as well too. Might as well do all of it at once.

Any helpful advice is much appreciated.

I just had a new Trane AC system put in and the company that put it in gave me 18 months same as cash (no finance charge if paid off on or before 18 months). It was magical. Find a larger, reputable company that offers 12 or 18 months same as cash financing. No brainer

 

[anthonys735]

So with those "gimmick" 12-18-36 month plans you just have to make sure to amortize the payments correctly and pay it off on time. They send a bill with a minimum payment which is probably 2.5% of the loan. I'm sure you understand this, but I've had it happen numerous times, paying the minimum payment doesn't get you to paid off in 12 or 18 months. If you miss a payment or can't afford to pay it off for some reason in the term you will revert back to a standard 60 month revolving credit line at most likely 31.9%+prime for the entire duration. That's how those places make money on gimmicky loans. I've personally used them for home remodeling but you just have to make sure you pay them off and use the autodraft payments so you don't f*vk it up. If you change banks don't forget to change the draft settings. Again, can't miss payments.

That's why I prefer the installment style loans amortized over how ever long you want to pay them off and they're 7pts lower than a standard credit card. If life happens and you can't make the term or you miss a payment, no big deal. At worst a late fee.


Other option would be a nice point bearing CC if you're ready for that. Chase Sapphire Preferred would be my suggestion. Full hvac system would hit min 3 month required spend and get 60,000 ur points valued at $750.


Please run this passed 55 for verification.

 

[TheDude73]

Costco Member Credit. 0% interest for different time periods. We put in a new furnace in our house in Oct. 2018 via Costco. The member credit plan is only for HVAC and flooring purchases. This is not the Costco credit card, but the "member credit" program.

This of course assumes you have a Costco near you.

 

[specialkd24_rivals116121]

Check and see what their deals are. Some offer up to 60 months 0% APR financing, but of course you have to have great credit. You may not qualify for their best deals. But shop around. If you can get a deal like that, I don't know why you wouldn't do that. Just divide up the payment by the number of months and pay that.

 

[anthonys735]

Check and see what their deals are. Some offer up to 60 months 0% APR financing, but of course you have to have great credit. You may not qualify for their best deals. But shop around. If you can get a deal like that, I don't know why you wouldn't do that. Just divide up the payment by the number of months and pay that.

Unless your credit is below 650 you will qualify for all plans. Some places are at 700 during pandemic.

 

[jameslee32]

Costco Member Credit. 0% interest for different time periods. We put in a new furnace in our house in Oct. 2018 via Costco. The member credit plan is only for HVAC and flooring purchases. This is not the Costco credit card, but the "member credit" program.

This of course assumes you have a Costco near you.

Yeah they sell Lennox.
https://www.costco.com/lennox-heating-air-conditioning.html

 

[TheDude73]

Yeah they sell Lennox.
https://www.costco.com/lennox-heating-air-conditioning.html

Yep that's what our furnace is. We paid it off pretty early and are now looking at new carpet next. They also gave us a $1000 Costco gift card, but beware, that actually ends up on the balance, and is not "free"!

 

[55wildcat]

So with those "gimmick" 12-18-36 month plans you just have to make sure to amortize the payments correctly and pay it off on time. They msend a bill with a minimum payment which is probably 2.5% of the loan. I'm sure you understand this, but I've had it happen numerous times, paying the minimum payment doesn't get you to paid off in 12 or 18 months. If you miss a payment or can't afford to pay it off for some reason in the term you will revert back to a standard 60 month revolving credit line at most likely 31.9%+prime for the entire duration. That's how those places make money on gimmicky loans. I've personally used them for home remodeling but you just have to make sure you pay them off and use the autodraft payments so you don't f*vk it up. If you change banks don't forget to change the draft settings. Again, can't miss payments.

That's why I prefer the installment style loans amortized over how ever long you want to pay them off and they're 7pts lower than a standard credit card. If life happens and you can't make the term or you miss a payment, no big deal. At worst a late fee.


Other option would be a nice point bearing CC if you're ready for that. Chase Sapphire Preferred would be my suggestion. Full hvac system would hit min 3 month required spend and get 60,000 ur points valued at $750.


Please run this passed 55 for verification.

Better yet listen to these companies that tell ya “ your just low on Freon “ you say why. They say it’s normal. Not!! Only reason you are ever low on Freon is because it was not charged right to begin with or you have a leak. # 1 earning is service runs which always ends in adding Freon because it’s low only for you to call later then they tell ya you got a leak. Think about the money spent. I worked 33 yrs for DuPont. Guess who makes Freon. I studied 5 years at company paid Jcc tech for hvac. You would not believe how bad the unknown consumer is getting ******. Do I work on ac Nope. Retired but I know well enough not to get ****** by these big name crooks. All I am saying. If you have a r22 compressor and it’s bad you gotta update to the ozone safe high pressure Freon. Original name was Suva. If you got a bad a coil or leak r 22 is available for repairs but they charge you out the *** per pound. IE cost for 22 may be 50 per pound but some will hit your up to 400 per pound. Like I say, they make their money not on new units but service runs.

 

[anthonys735]

Actually, no one makes freon as of Jan 1st, 2020.

 

[55wildcat]

I

Actually, no one makes freon as of Jan 1st, 2020.

You forgot to add you can still get it. U know it and I know it. That’s why my unit is still 22 and they charge out the *** for it. They want you to believe 22 is not available so they can sell you a new high pressure 410 unit. Some will tell you they don’t make it anymore knowing they have a tank of 22 on their trucks.

 

[anthonys735]

You forgot to add you can still get it. U know it and I know it

You can still get the remaining quantities and/recycled but you can not produce it.

Man, you're on it today.

 

[55wildcat]

You can still get the remaining quantities and/recycled but you can not produce it.

Man, you're on it today.[/QUOTEub

u are too nobody said it was still produced. But it’s still available. U da man. Go Bryant !!

 

[55wildcat]

Does your trucks have any 22 on board?? Be honest

 

[BernieSadori]

I've used Bryant for repairs and replacements on my two previous homes. Never got screwed or "sold" anything that wasn't needed.

My BIL's father owns a local HVAC company and he'd come over to look at anything I was having issues with 1st to see if it was an easy fix. If not, he recommended what he'd do. Each time, it was exactly what Bryant recommended.

Why didn't I use my BIL?
1. I don't like to do business with in-laws
2. I liked Carrier (Have geothermal now)
3. I've been doing business with Bryant almost 15 years.

Maybe you had a bad experience or something. Maybe Troy at Greendale took all the attention while you were at HVAC school. Whatever it is, it seems personal and not professional.

 

[55wildcat]

I've used Bryant for repairs and replacements on my two previous homes. Never got screwed or "sold" anything that wasn't needed.

My BIL's father owns a local HVAC company and he'd come over to look at anything I was having issues with 1st to see if it was an easy fix. If not, he recommended what he'd do. Each time, it was exactly what Bryant recommended. But you go girl!!

Why didn't I use my BIL?
1. I don't like to do business with in-laws
2. I liked Carrier (Have geothermal now)
3. I've been doing business with Bryant almost 15 years.

Maybe you had a bad experience or something. Maybe Troy at Greendale took all the attention while you were at HVAC school. Whatever it is, it seems personal and not professional.

No bad experience at all. I know he is tied in with Bryant. My issue was him calling out home warranty companies and who they send for repairs. I could care less about what Anthony does or who he works for ( daddy maybe) but don’t trash talk other companies or who they employ. It’s wrong. He basically was saying don’t trust home warranty companies or their ac guys they send. Second rate. Your business should be built on merit not down talking another. That’s it. Nothing more. My experience with my home warranty company is nothing but positive. All to often competitors down talk each other to gain business. If my business did not stand for itself why have it. Even though a company reps a certain brand most can install any brand you want. They do make more on who they rep. All I’m sayin. Ps I call ******** on that not using family thing. There is not nobody on earth that would not try to save a few bucks using a family business. Your so full of ****.

but you go girl. Snap snap

 

[BankerCat12]

If you have $80k in equity, you should be able to find a bank that will do a small home equity line for you. Pre-covid some places were doing up to 90%,but most now are down to 80% loan to value. I hope you did not do a FHA loan. I am not sure why that was even the case if you have that much equity.

 

[anthonys735]

Does your trucks have any 22 on board?? Be honest

Yes. I keep it on about 1/3 of my trucks. Too expensive and not enough demand to keep on all. Puron on all trucks though.

Glad you had a good experience. Like I said some industries seem more successful. If you don't mind waiting and are persistent you'll have better luck. If you're looking for quick permanent solutions it's not for you.

I was offering the guy advice on something I know a lot about. Just like I've done here for 15 years. Still no clue if he's local in one of my markets or not. Dont really care. I've helped dozens of out of state guys as well as local guys that ended up using competitors. Not sure why me trying to help has triggered you but have at old dude.

Of course not all of the contractors are bad companies but any decent company isn't going to put up with their nonsense for long. Sorry that offends you. I was talking down HWC not a specific contractor. This is after op mentioned his negative experience mind you. Ask the next contractor you have over how long he's been working with that hwc. Most are either new companies trying to get a foot in or unlicensed 1 man bands from out of state looking for a cash grab. HWs won't allow a company to diagnosis and repair/replace honestly for long. Your average ticket gets too high you lose the business. New guy with low avg ticket gets the calls. They're an insurance company hoping you never use the product so they can cash in. But since you seem to know everything I'm sure you have inside knowledge of how insurance works as well. It's not to give a bunch of free **** to everyone, that's for sure.

Glad you know who I am because I have no idea who you are and unless you creepy lurk I don't how you'd know me. Regardless, you hijacked an otherwise decent thread.

 

[UK4number9]

I've used Bryant for repairs and replacements on my two previous homes. Never got screwed or "sold" anything that wasn't needed.

My BIL's father owns a local HVAC company and he'd come over to look at anything I was having issues with 1st to see if it was an easy fix. If not, he recommended what he'd do. Each time, it was exactly what Bryant recommended.

Why didn't I use my BIL?
1. I don't like to do business with in-laws
2. I liked Carrier (Have geothermal now)
3. I've been doing business with Bryant almost 15 years.

Maybe you had a bad experience or something. Maybe Troy at Greendale took all the attention while you were at HVAC school. Whatever it is, it seems personal and not professional.

Honestly this post seems personal

 

[bluthruandthru]

Must have had an HVAC guy take a deuce under his porch before gouging him on the double deuce.

 

[BernieSadori]

Honestly this post seems personal

It is when you can trust the company you do business with.

 

[UK4number9]

Easy to trust if you are personal friends with the manager.