Using a HELOC to Pay for Your HVAC Upgrade: What to Know

Key Takeaways

• A HELOC can offer lower interest rates and flexible borrowing for HVAC upgrades, but it uses your home as collateral.
• It’s a good option for homeowners with solid equity who want long-term repayment and aren’t in a rush.
• Variable interest rates and a slower approval process are key drawbacks to consider.
• If you need fast, low-risk financing, Mint Home’s partners may be a better fit.
• Mint Home does not offer HELOCs however, if this option sounds right for you, you’ll need to apply through your personal bank or lender

Let’s face it, HVAC systems aren’t cheap. When it’s time for a replacement, figuring out how to pay can feel like its own project.

Some homeowners go with Mint Home’s financing partners. Others want more flexibility and control. If you’ve built equity in your home, a Home Equity Line of Credit (HELOC) might be one option to explore. While Mint Home doesn’t offer HELOCs directly, this guide can help you decide if it’s an option worth pursuing through your bank or credit union.

What Is a HELOC?

A Home Equity Line of Credit (HELOC) is a type of revolving credit that lets you borrow against the equity you’ve built in your home. Think of it like a credit card, but tied to your house.

You’re approved for a maximum limit, but you don’t have to use it all at once. Instead, you can draw funds as needed, often during a 5–10 year “draw period,” and only pay interest on what you borrow. After that, you enter the repayment period, where you pay back the balance over time.

Because it’s secured by your home, a HELOC usually offers lower interest rates than unsecured loans. But it also carries more risk if you’re unable to repay.

If this route sounds right for you, you’ll need to reach out to your bank, credit union or another qualified lender to start the application process.

Potential Benefits of Using a HELOC for HVAC

• Lower interest rates: Because your home backs the loan, you’ll usually get better rates than a personal loan or credit card.
• Borrow only what you need: You don’t have to take out a lump sum. Draw what you need as your project moves forward.
• More time to pay it off: Many HELOCs come with longer repayment terms, which can ease the month-to-month burden.
• Possible tax perks: If the money is used for home improvements, you may be able to deduct the interest (talk to a tax advisor).

Things to Watch Out For

• You’re using your home as collateral: If you can’t make payments, the consequences are serious. This isn’t a no-strings-attached loan.
• Rates may vary: HELOCs often come with variable interest, so your payments could go up over time.
• Extra fees: Some lenders charge closing costs, appraisal fees, or annual account maintenance.
• Slower approval process: Getting a HELOC usually takes longer than the instant financing options offered through Mint Home.

When a HELOC Might Make Sense

• You have enough equity in your home
• You want flexibility and a longer repayment window
• You're not in a rush to install your new system
• You prefer working directly with your own bank or lender

If you need fast approval, want to avoid putting your home at risk, or prefer a fixed monthly plan, using Mint Home’s financing partners might still be the better fit. To learn more about our partners please visit our financing resources page.

Need help deciding? We get that it’s a big decision. While we don’t offer HELOC’s directly, our team is happy to talk through all your options and help you figure out what makes the most sense for your budget and comfort.