Thinking of replacing your old furnace or installing a new furnace system? If you’re someone living in a colder climate, timely furnace replacement is a wise decision. A good furnace will run through any temperature — and be your source of comfort in the severest of winters. If you do not have enough money in the bank to pay for the heating system upfront, you needn’t fret. You can qualify for furnace financing as long as a loan lender deems you to be creditworthy.  

How do you know if your furnace is dying?

A well-maintained furnace can last you between 15 and 20 years, provided you ensure its annual maintenance and are diligent with the repair work. That way, you can extend its life even longer.

If you have an older appliance, you should be looking for signs of a dying furnace and replacing it as and when required. This can help you avoid sudden furnace failure or disruptions in the heating service. Trust us, having furnace problems can be very stressful. Especially in the middle of a bad winter.  

Most importantly, the health issues originating from old furnaces can wreak havoc in your life. The symptoms may range from dust allergies to a dry nose, throat, or skin. In the worst-case scenario, you or any of your family members may experience symptoms of carbon monoxide poisoning

Some of the carbon monoxide poisoning symptoms include headaches or nausea, a sense of disorientation, flu-like symptoms, or burning sensations in the nose and eyes. 

So, it’s better to replace a furnace that has lived past its life or is constantly in need of repairs. 

Here are some noticeable signs that your furnace is on its way out:

Increase in heating bills

If you notice a sudden increase in your monthly heating bills, despite keeping up with annual professional maintenance and sealing your air ducts — it’s a good indication that your furnace is about to go. The cost of buying a new furnace can be offset by its better energy efficiency system. You will notice an obvious reduction in your monthly bills.

Read more: Top 10 Ways to Save Money on Your Energy Bill

Frequent repairs needed

If your old furnace has been repaired frequently in the past few years — with the repair costing you more than half the price of a new furnace — you must consider buying another furnace. You can easily get some of the best new furnace financings in your area. 

Unusual sounds from the furnace

Generally, furnaces do not make any substantial noise while working. If you hear loud banging, thumping, scraping, or rattling sounds — chances are, your furnace is near the end of its life. Excessive noise just goes to show that your old furnace is working harder to heat your home. And, therefore, consuming more energy. 

Insufficient heating

A faulty furnace would mean that your home isn’t reaching the temperature you desire. If the temperature is not consistent and you need to constantly adjust the thermostat — it’s another sign of a heating problem. Maybe a bad thermocouple or pilot light is causing the airflow to be weak. Whatever the reason, please contact a licensed contractor at the earliest.

Yellow burner flame instead of blue

Furnace flames should be blue. If the burner flame is yellow instead — there’s a big chance that your heating appliance is emitting carbon dioxide. Simply put, your furnace fuel is burning less cleanly and efficiently. Do not ignore the change in flame color; it could either mean incomplete combustion or a potential gas leak.

Dusty, dry indoor air and visible soot

An inefficient furnace can cause the air in your house to go stale. If you’re witnessing dust, static electricity shocks, unhealthy plants, visible streaks of soot around the furnace, moisture on the windows and walls, or rusting of flue pipes — it’s time to invest in a new, more efficient furnace. 

The first step in seeing any of these signs is to call your utility company to shut off the fuel source.

How much does a new furnace cost?

An average furnace replacement costs about $5,500. Generally, the range is $2,60 to $6,350. This amount includes materials, the cost of the equipment, and labor charges. Of course, the furnace installation cost depends a lot on the type of furnace being installed, and where you live. For example, replacing a gas furnace costs between $3,800 and $10,000 (or more if you’re opting for high-efficiency models or complex installations). 

Most electric models are slightly less expensive at $2,000 to $7,000. If you live in a region experiencing heavy winters, you will have to invest in an advanced furnace, like the geothermal furnace.

Keep in mind that labor costs alone can make up $500 to $2,000 of the total home improvement project budget. 

Want to know how much money you need for a new furnace? Get a home remodeling estimate through Kukun’s furnace replacement cost estimator!

Here’s a table showing you the average costs of furnaces according to their types:

  • Gas furnace: $3,800 to $10,000
  • Electric furnace: $2,000 to $7,000
  • Oil furnace: $6,750 to $10,000
  • Mini-split furnace: $5,000 to $15,000
  • Geothermal furnace: $10,000 to $40,000+

You should always consult an HVAC professional to know exactly what type/model/size of furnace you’ll need for your home. Your HVAC pro will look at your location, the size (livable square footage), configuration and age of your house to let you know the most cost-effective way to heat it.

Looking for a licensed HVAC contractor for your furnace installation? Use Kukun’s Find a Pro tool for the most reliable professionals!

Calculating furnace sizes

How big should your furnace be? This is an important question that every homeowner should ask themselves before investing in a new furnace. You do not want a furnace that looks like the right fit, but isn’t. You’ll end up constantly repairing it or paying a heavy energy bill. 

Too small a furnace will mean insufficient heating while a big furnace will mean excessive energy consumption. And, no homeowner wants to pay more costs, get less heating, and put up with faulty furnace operations. Therefore, it’s important to get the sizing right, with significant energy savings. Having a furnace that’s of the right size will ensure proper heating throughout your home. 

In order to provide you with perfect sizing for your furnace, your furnace pro will: 

  1. Calculate the square footage of your home and the area that requires heating (barring rooms that do not have vents).
  2. Take your climatic conditions, location into account. Quite obviously, homes that experience colder winters will require a furnace with more heating power.
  3. Calculate the British Thermal Units (BTU) if it’s a gas furnace. A BTU is the amount of energy required to cool/heat one pound of water by one degree Fahrenheit.
  4. Consider the age, construction of your home, and your home insulation.

Heating system costs based on sizes

Furnace BTU Total Area Average Cost
40,000 – 60,000700 to 1,500 square feet$2,000 to $3,000
80,000 – 100,0001,300 to 3,000 square feet$2,600 to $4,200
100,000 – 125,0001,600 to 4,000 square feet$3,000 to $4,500
125,000 – 150,0002,000 to 5,000 square feet$3,300 to $6,500

Can you finance a furnace?

Yes. Furnace financing is readily available. You just have to choose the best furnace loan according to the payment plan you have in mind. There are a number of furnace financing companies, including Kukun’s home improvement loans, that can provide financing not just for home furnaces but for a wide variety of home maintenance needs too. And, the loan application process is easy, quick, and helpful!

Financing your heating and cooling system will make your home improvement project easier to deal with. With fixed monthly installments, you can plan your home renovation in a manageable way. The loan repayments can be spread out over many years (even up to 10 years!). So, you can pay back the loan amount in a convenient way. Therefore, a new furnace financing plan is a smart option. 

You can choose from the best bank loans or even pay for the installation through a credit card (though, it will cost you a very high-interest rate). Or, through a home equity loan if you have sufficient credit or home equity in your name. 

In case you’re in a vulnerable economic situation, you may seek financial help through government programs. There are various special financing programs available in the United States, both state and federal, to make furnace replacement financing easier for you.

What are the best ways to finance a furnace?

Furnace Financing Options Best Features
Unsecured Personal Loan– It’s an unsecured debt that can be used for almost any type of home improvement or emergency.
– There’s no requirement of a collateral.
– Loan eligibility/loan interest rates solely depend on income history and credit score.
– Loan approval is quick, with funding time ranging from one business day to a week.
Credit Card– Easy borrowing but with a set credit limit.
– Higher APR than a personal loan.
– Best option is to use the card during a promotional 0% APR period (12 to 21 months).
– Ideal for those who need furnace financing without paying a down payment.
Buy-Now-Pay-Later– Helps you buy a furnace and pay for it over time.
– Breaks up your big purchases into more manageable, monthly payments.
– Good option for those shopping for a furnace at a storeLets you own the item on complete payment. 

Buy-now-pay-later furnace, is it worth it?

The furnace financing you choose boils down to what best fits your life, financial situation, and personal preference. If you have ready cash to replace your furnace, then buying outright may be the best option for you.

Otherwise, a buy-now-pay-later furnace financing will let you buy the heating system right away and pay for it later. If you use this financing solution sensibly and make your monthly payments on schedule, it shouldn’t negatively affect your credit score.

Can I finance a furnace with bad credit?

Furnace financing (bad credit) is very much possible. We, at Kukun, believe that your low credit score shouldn’t affect your ability to buy the best home comfort system you want. Whether your furnace has suddenly broken down or that HVAC system/air conditioning system has stopped working, you can be eligible for good financing. However, keep in mind that your bad credit may dictate your interest rate, loan origination fees, loan term, or loan amount.

How much does it cost to finance a furnace?

Investing in a new furnace (without prior savings) may be a little too expensive to bear for an average homeowner. Financing makes this unreachable purchase very do-able with convenient monthly installments. 

If you’ve applied for a personal loan of $5000 to $6000, for example, you may have to pay as little as $62.50 a month, with no down payment. Not bad, huh? So, do not delay buying that much-needed furnace anymore. Begin work on your financing application, today!

New Furnace Financing For Good & Bad Credit was last modified: February 4th, 2021 by Ramona Sinha