Home repair loans
Fix it or replace it? The trades use one rule. Here it is, with a slider.
The 50% rule: if the repair costs more than half of a new unit and the appliance is past half its expected life, replace it. Pick the thing that broke, set its age and the quote, and the gauge gives the verdict plus what either choice costs per month.
Eight things that break, and when.
Typical service life and 2026 repair-vs-replace prices for a mid-range unit, installed. The bar is life expectancy on a 25-year scale.
| Appliance | Expected life | Typical repair | Replace, installed | |
|---|---|---|---|---|
| Water heater, tank | 10–12 yrs | $150–$700 | $1,200–$2,500≈ $185.85/mo × 12 | |
| Furnace, gas | 15–20 yrs | $150–$1,200 | $4,000–$7,000≈ $552.51/mo × 12 | |
| Central AC | 12–15 yrs | $200–$1,500 | $5,000–$8,000≈ $652.97/mo × 12 | |
| Refrigerator | 10–15 yrs | $200–$500 | $1,000–$2,500≈ $175.80/mo × 12 | |
| Washer | 10–13 yrs | $150–$400 | $700–$1,200≈ $95.43/mo × 12 | |
| Dryer | 10–13 yrs | $100–$350 | $600–$1,100≈ $85.39/mo × 12 | |
| Dishwasher | 9–12 yrs | $150–$350 | $600–$1,200≈ $90.41/mo × 12 | |
| Roof, asphalt shingle (patch vs section) | 20–25 yrs | $300–$1,200 | $2,500–$6,000≈ $426.94/mo × 12 |
Sources: manufacturer service-life guidance and 2026 contractor quote ranges. A water heater past 12 years or a furnace with a cracked heat exchanger is a replace at any repair price.
Three ways the contractor will offer to finance it.
Installers sell financing because the lender pays them a fee. That's not sinister, but it is why you get the cash price first.
Contractor 0% for 12–18 months
Through GreenSky, Synchrony or the manufacturer. Approved on the spot, nothing down.
Deferred interest at 20–30% back to day one if a dollar remains after the window. Ask whether the cash price is lower; dealer fees of 5–10% are often built into the financed quote.
HELOC or home equity loan
Lowest rate for anything over $5,000 (roof, full HVAC) and interest may be deductible for improvements.
Weeks to close, closing costs, and the house is the collateral. Wrong tool for a $1,800 water heater on a Tuesday.
An installment loan
Funds today or tomorrow, fixed payment, no lien on the house, no deferred-interest clause. $180.82 a month on $1,800 over 12 months at 35.99% APR; stronger credit prices lower.
Pay the installer's cash price, keep the warranty paperwork, pay the loan off early for free when the tax refund lands.
Representative example: $2,500 over 12 months at 35.99% APR is $251.14 a month, $3,013.71 total. Your offer shows your rate before you sign.
Before you borrow for the house.
Free or cheaper than any loan. We put them first on every emergency page.
- Check the warranty and the home warranty.
Water heaters carry 6–12 year tank warranties; furnaces 10–20 on the heat exchanger. A home warranty plan, if you have one, covers most of this list for a $75–$125 service fee.
- Ask the utility about rebates and on-bill financing.
Efficient furnaces, heat pumps and water heaters often carry $200–$2,000 in utility or federal credits, and some utilities finance the replacement on the bill at low interest.
- Get two quotes, one from a plumber or electrician.
Appliance-repair companies quote replacement; a licensed plumber will often repair a valve or element for a fraction. Thirty minutes of calls, routinely $500 saved.
Home repair loan
questions
More in the full FAQ.