How to Pay for a New Furnace: Navigating Your Heating Investment

Although furnaces are a common heating choice, they fall short in terms of effectiveness; the heat pump takes the lead. Not only are heat pumps highly efficient in curbing energy waste and reducing utility bills, but they also open the door to various tax credits and deductions, lightening the financial burden. While this article delves into optimal furnace financing options, it’s crucial to highlight that there exists a superior, safer, cleaner, and more comfortable method of heating your home.

For those qualifying for Sealed, the opportunity to obtain a high-efficiency HVAC system with zero upfront costs (inclusive of beneficial rebates) awaits. Flexible financing options are also available, offering a seamless transition to a more efficient and cost-effective heating solution. Verify your eligibility here to embark on the journey toward a smarter and environmentally friendly heating system.

How much does a new furnace cost?

Swapping out your old furnace for a gleaming new one can come with a price tag ranging from $2,000 to over $10,000 on average. This cost varies based on factors such as your home’s size, the furnace brand, thermostat type, and the complexity of the installation process (1).

It’s essential to note that this cost estimate is solely for the furnace itself—additional expenses for ductwork repairs, a new cooling system, or work required to address air leaks and insulate your home (if needed) are not included.

Feeling a bit uneasy about the potential costs? You’re not alone. Recent surveys indicate that a significant number of homeowners nationwide are delaying necessary upgrades due to the substantial expenses (2). However, we argue that a fully operational and efficient air conditioning and heating system is crucial.

How do people afford a new furnace?

Paying for a new furnace replacement can be achieved through various methods. Explore the optimal way to finance a new HVAC system according to our expert opinion.

1. Use Cash: The most straightforward method involves using cash, but it requires tapping into a significant amount from your savings account. This might not be ideal if you had alternative plans for those funds, such as bolstering your emergency fund, investing in education or retirement, settling car payments, or constructing an underground lair for your alter ego.

2. Get a Loan: Loans come in diverse forms, and choosing the right type depends on personal preferences and credit score. Here are some popular ways to fund your new heating system:

• Personal Loan
• Home Equity Loan
• FHA Title 1 Loans

Remember to shop around to identify the loan offers or programs that suit your situation. Scrutinize the terms thoroughly before committing, especially details about:

• Interest rates
• Repayment terms
• Additional fees

3. Contractor-Provided HVAC Financing: Many contractors offer financing options for HVAC replacements. These plans may come with competitive interest rates, and some even provide special financing promotions. Ensure you comprehend the terms and conditions before proceeding.

4. Credit Card Payment: Charging the cost to your credit card is another option, but it’s crucial to evaluate the interest rates and consider potential impacts on your credit score.

5. Participate in an HVAC Upgrade Program: Certain programs offer incentives and discounts for upgrading to more energy-efficient heating systems. Check if you qualify for such programs in your area.

Evaluate each option carefully to determine the best fit for your financial situation and heating system needs. If considering a personal loan, be aware that various options exist, especially for those with a robust credit score, but individuals with lower credit scores might encounter higher APRs, potentially reaching 36%.

How many quotes should I get for a furnace?

In the Kansas City area, HVAC contractors abound, saturating the airwaves with a myriad of advertisements and specials on radio and television. To ensure you make the right choice for your home, especially if you don’t already have a trusted contractor, our recommendation is to seek three quotes. While the ultimate decision rests with you as the homeowner, the multitude of variables and options can be overwhelming.

The ever-growing demands for energy efficiency and comfort have led to a plethora of products in the market, offering several considerations. Even obtaining a quote from a single contractor can leave homeowners feeling inundated with choices. Adopting a Good, Better, Best approach is a prudent method for making informed decisions.

Homeowners seek clarity on their options, and it falls upon HVAC contractors to furnish this vital information. When comparing the received quotes, ensure that each contractor provides estimates that align in terms of efficiency, size, and accessories for your system.

How Do I Choose The Right Contractor?

Investing in a new air conditioner, furnace, or a complete HVAC system is a substantial and often unexpected expense, leaving little time for decision-making. The significance of the installation process is on par with the quality of the equipment chosen. Opting for a contractor with a proven track record is paramount. Request references and reach out to those individuals. It’s crucial to have the proposal in writing, and your contractor should be enthusiastic about addressing your questions and furnishing the necessary information for an informed decision.

Considerations such as financing options, utility rebate incentives, and warranties also play a vital role in selecting the right HVAC contractor. Additionally, perusing online reviews provides valuable insights into the company’s reputation.

What is the average life of a new furnace?

The typical lifespan of furnaces and heating systems ranges from 15 to 20 years, while boilers and electric furnaces often endure for 20 to 30 years. Various factors can influence the longevity of your furnace.

Undoubtedly, routine maintenance emerges as a crucial determinant in the lifespan of a furnace. Consistent upkeep not only prolongs the unit’s life but also identifies warning signs before they escalate into major repairs. Furthermore, inadequately maintained furnaces pose a safety hazard, with the potential to leak carbon monoxide into the home.

Tips for Furnace Maintenance:

1. Use appropriate filters and replace them monthly.
2. Minimize furnace run time by maintaining a low thermostat setting. Limit air leaks by upkeeping caulk and weatherstripping on doors and windows.
3. Ensure all vents in your home are open and unobstructed to prevent pressure buildup in ductwork, which can damage the unit.
4. Schedule an annual maintenance check by hiring an HVAC contractor. While a furnace tune-up typically costs between $150 to $250, opting for extremely inexpensive tune-ups may not be advisable.
5. Lubricate motor bearings and other moving parts.
6. Clean the fan and fan compartment, and tighten or replace fan belts.
7. Conduct checks on electrical connections and voltage.
8. Test and inspect the heat exchanger for cracks and damage.
9. For fuel-fired heating systems, verify proper draft and clearance to combustibles in the exhaust system.
10. Complete a combustion air calculation to ensure adequate combustion air for the furnace.
11. Clean and inspect burners.
12. Check gas connections for leaks and verify proper pressure.
13. If applicable, inspect and clean the condensate drain line.
14. Test and calibrate the thermostat.
15. Clean and straighten coil fins.

Determining Furnace Age: While most manufacturers don’t print the manufacture date on the furnace label, you can still figure it out. Remove the cover from the furnace, locate the model and serial numbers, and use the serial number to determine the age by searching the brand name online. This allows you to decode the serial number and ascertain the age of your system.