All qualified dealers usually in conjunction with manufacturers, have access to companies that will finance your heating and air conditioning system. Nearly all the time, no down payment is required and the payment is only 2% of the outstanding balance per month. The interest rate varies from as low as 12% to as high as 21%. You should shop this interest rate as hard as you shop equipment pricing, because over a 10-year period the dollars really mount up. The difference in interest cost between a $10,000.00 loan over 10 years paid off monthly at 12% and at 21% is $6,775.52.
The best loan is a home equity loan and the lowest home equity interest rate loan is an EnergyStar loan. Not only can you get a low rate, but the interest is usually tax deductible. However, there is a considerable amount of paperwork involved in a home equity loan along with doing appraisals, etc. The good news is no matter which loan you get; the new high efficiency systems on the market today usually let you offset the total monthly payment with the operating savings of these new efficient systems. To calculate monthly payment on home equity loan click here.
Tip: Most dealers in conjunction with manufacturers offer a financing plan of "six months no interest, no payments". A variation of this is "six months same as cash". The difference is that with 6 months same as cash, if you payoff the note in six months and one day, you are actually charged the interest for the full six months.
These programs are offered at very low cost to the dealer, because the finance company is counting on you to continue the finance program and not paying it off in six months. The best deal for you is to take the six months same as cash or six months no interest, no payments plan. Then, in the six months that you have before you have to pay it off, you can shop around to get the best interest rate possible. Not only will you get six months with no interest and no payments, the savings on a $10,000.00 loan at 15% is $750.00, but you also have the time to shop for the best possible interest rate.