SoFi

There’s a lot that goes into making homes safe and comfortable. After plumbing and electric, many homes in warm and cold climates alike have heating, ventilation, and air conditioning (HVAC) systems to regulate temperature and air quality.

Installing or updating HVAC systems typically requires ductwork to effectively move air from the system to vents throughout a home or building. There are several factors that impact the cost of HVAC ductwork, including the size and layout of a home, materials used, and type of system.

This guide will give you the basics of how HVAC ductwork operates and key cost considerations.

What Is Ductwork?

In the broadest sense, ductwork can be defined as the channels used for transferring heated and/or cooled air through the rooms and zones of a home or building.

In many cases, HVAC systems need separate supply and return ducts to circulate, filter, and treat air continuously. Supply ducts bring air from the furnace, geothermal pump, or other type of system to blowers and vents to heat or cool an area. On the flipside, return ducts transport untreated air back to the HVAC system.

Some of the most common HVAC systems that need ductwork include:

•   Geothermal or ground source heating and cooling

•   Central air conditioning

•   Furnaces

•   Central gas heating

Between these different systems and a home’s unique characteristics, ductwork can be handled in a variety of ways.

Recommended: How to Winterize a House

Installing New Ductwork

Figuring out how to install ductwork varies in complexity and cost between new construction and finished and furnished homes.

Additional steps that may be necessary for a finished home, such as cutting holes in existing walls, ceilings, and floors, may likely drive up the price of labor and require more materials and time for installation. Depending on where the system is placed, ducts may be run through closets, attics, basements, or up stairwells.

Since different homes require different amounts of ductwork, it’s helpful to think of cost on a linear foot basis. New ductwork can cost about $40 to $65 per linear foot, with the variation coming down to costs for materials and labor.

On average, retrofitting an existing home without ducts can run $2,400 to $6,600.

If you’re building a new home, including plans for HVAC ductwork from the getgo could reduce the overall installation cost. For starters, it would bypass the need to retroactively cut holes throughout a home for ducts and vents.

Additionally, it may be easier to design systems that utilize fewer linear feet since ductwork can be installed before walls and floors are completed.

Replacing Ductwork

If your home is already fitted with ductwork, replacing a portion of it or the entire system might be necessary due to leaks, cracks, or reduced efficiency over time. Since ducts are usually kept out of sight behind walls and ceilings or in attics and basements, accessibility is a key factor in repairing a system.

The replacement process involves both removing the existing materials and installing new ductwork. Replacing ductwork can cost from $25 to $55 per linear foot depending on the location of the existing system and choice of materials for the new ductwork.

Replacing ductwork in a home between 2,000 and 2,500 square feet can run $2,800 to $5,600; for a 3,000 to 3,500 square foot home, it can ring up between $4,200 and $7,800.

Exposed ductwork can be easier for you to reach and replace on your own, but a professional contractor may be necessary for more complicated repairs and getting to concealed HVAC systems.

Additionally, a skilled professional could likely complete the job in less time than a DIYer might, and time may be a more pressing factor than money in the middle of a cold snap or during a heatwave.

The U.S. Environmental Protection Agency’s EnergyStar program recommends getting quotes from contractors with North American Technical Excellence (NATE) or Building Performance Institute (BPI) certification to get the job done right on the first try.

Recommended: The Cost of Buying a Fixer-Upper

Ductwork Materials

There are several types of materials to consider when planning how to install ductwork in a home. Broadly speaking, ductwork can be categorized as flexible or rigid, with options for materials within each category. Each comes with tradeoffs in terms of price, lifespan, efficiency, and flexibility.

Flexible Ductwork

True to its name, flexible ductwork is characterized by its ability to bend, which can come in handy when installing inside tight and tricky spaces.

In most cases, aluminum or non-metallic materials like plastic, polyester, and PVC are used for flexible ductwork. Let’s take a look at how they compare.

Flexible Aluminum: Costs between $4 to $7 per linear foot (excluding labor).

Pros:

•   Ideal for installing in hard-to-reach places

•   Longer lifespan than non-metallic flexible ductwork

•   Generally cheaper than rigid ductwork

Cons:

•   Poor energy efficiency without added insulation and sealing

•   Needs to be reinforced to minimize kinks and bends to improve airflow and efficiency

Flexible Polyester: Costs between $1 to $5 per linear (excluding labor)

Pros:

•   Useful for compact spaces

•   Generally one of the cheapest options

•   Resistant to mold and rust

Cons:

•   Prone to tearing and less durable than flexible aluminum

•   Needs to be reinforced to minimize kinks and bends to preserve airflow and efficiency

Rigid Ductwork

Rigid ductwork can be made from several materials, such as fiberglass and galvanized steel or aluminum. These options can also vary in shape (e.g., cylindrical or rectangular) and size. Additionally, there are differences in cost and features for each type of rigid ductwork.

Sheet Metal Ductwork: Made from galvanized steel or aluminum, these materials usually cost anywhere from $8 to $15 per linear foot.

Pros:

•   Greater durability than other materials

•   Can produce less noise than flexible ductwork

•   Less susceptible to mold and mildew

Cons:

•   Difficult to install if there isn’t space for long, straight lines of ductwork

•   Adding insulation may be required for greater energy efficiency

•   More expensive than flexible ductwork

Fiberglass Duct Board: Consisting of metal ductwork lined with fiberglass, this option costs between $5 and $10 on average.

Pros:

•   Built-in insulation improves energy efficiency and temperature control

•   Easy to cut and seal

•   Well suited for installing between a building’s rafters or floor joists

Cons:

•   Over time, they can release fiberglass particles into the air and be susceptible to mold and mildew

•   Can be difficult to clean

•   Often the most expensive option per linear foot

Recommended: Strategies to Lower Your Energy Bill When Working From Home

Sealing and Insulation

Depending on the structure of a home, the type of HVAC system, and other factors, sealing and insulating ductwork may be necessary for health and safety concerns. It might also improve the efficiency of a system, thus potentially lowering your energy use, and may help pay for itself through lower utility bills.

If combustion is involved in your HVAC system, which is generally the case for furnaces and central gas heating, harmful gases like carbon monoxide are generated in the process. Sealing ductwork can further safeguard that such gases are not circulated into the living space of home instead of being emitted outside.

While professional contractors are recommended for sophisticated ductwork insulation and sealing jobs, homeowners may choose to take a DIY approach to sealing near vents and other ductwork connection points with metal tape. These locations, especially vents, can be more accessible and are more common locations for leaks.

How Often Should Ductwork Be Replaced?

While we may immediately notice when the power goes out or the plumbing is backed up, it’s harder to tell if we’re getting the most out of a heating and cooling system.

Maintenance and cleaning can help extend the lifespan of ductwork and heating and cooling systems, but a time will come when replacement is a safer and more financially sound choice.

Erring on the side of caution, you may want to have a heat pump or air conditioner (including ductwork) replaced if it’s more than 10 years old. For a furnace, the estimated lifespan is around 15 years.

To keep your ductwork in tiptop shape, there are some maintenance tasks, like changing air filters monthly, that can be done on a DIY basis. More complex procedures, such as cleaning blowers, checking electrical connections, and lubricating mechanical parts, may be better handled by a professional contractor.

Having a maintenance checklist handy can be helpful for staying on top of your cleaning and maintenance schedule, as well as making sure a contractor checks all the boxes when inspecting your HVAC system.

Recommended: Guide to Buying, Selling, and Updating Your Home

The Takeaway

Whether saving ahead or responding to a sudden home repair cost, there are options available for paying for HVAC ductwork.

Installing energy-efficient heating and air conditioning systems may qualify for a residential energy property tax credit. Additionally, some states and utilities offer incentives and rebates.

Although helpful, these incentives and tax credits still leave a portion of the cost to the homeowner. It can sometimes be difficult to save for potentially pricey repairs like these if a budget is already stretched thin.

One financing option you might consider is an unsecured home improvement loan. This is a personal loan designed to be used for home upgrades and repairs, and typically comes with a fixed interest rate, set term, and regular monthly payments. Unlike a home equity loan or line of credit, personal don’t require you to have equity in your home or use your home as collateral.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOPL0623068

Buying property is a way to invest outside the stock market. Owning a rental can offer key benefits to homebuyers, including a potential stream of passive income and the possibility for real estate to grow in value.

When debating whether to invest in the home-buying process, the difference between a single family or multifamily home can matter.

Each home type comes with pros and cons, which investors may want to chew on before opting for a specific real estate investment.

Here’s a look at the major differences between single family and multifamily investment properties.

What Is a Single Family Home?

Single family homes are stand-alone structures with their own lot. They don’t share common space with another unit.

Generally, they’re meant to house one tenant or a family. In the real estate world, single family homes differ from attached properties, like condominiums or townhouses.

Those considering investing in a single-family home could start the process in much the same way as when buying a primary residence, enlisting the help of a real estate broker or home loan lender.

Below are some factors investors may want to think through when looking into single family properties:

Affordability of Buying

When an investor is deciding how much house to afford, single family homes are typically priced lower than multi-unit constructions.

Because they’re designed with one family or individual in mind, single family homes are generally smaller in size — and less square footage (and floors) can mean lower listed prices on the property.

Other costs, such as utilities, don’t necessarily add to the price of investing in a single family house. Rental agreements typically require tenants to pay all or nearly all of the utilities costs for a home.

In a multifamily unit, the landlord may have to shoulder more costs, such as the cost of electricity used in common spaces.

💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.

Fewer Tenants Can Mean Less Conflict

In multifamily units, landlords may be called in to resolve all sorts of conflicts between tenants. For example, landlords may have to mediate tensions if a neighbor is noisy or has a loud pet.

A single person or family living in a single-family unit lessens the chance for conflict between tenants. (In rare cases, landlords may deal with conflicts between single family tenants and neighbors in nearby buildings, though.)

Additionally, tenants who live in a stand-alone home may be more likely to treat the buildings as their own, taking better care of the house and lot.

They may closely monitor the condition of the whole home, letting landlords know when there are maintenance issues to take care of.

Reduced Maintenance Costs

Speaking of maintenance, single family units typically require less upkeep than multifamily buildings.

In a multi-unit property, things can get complicated. Landlords may be dealing with different sets of appliances or diverse tenant schedules, for example.

If something goes wrong in one unit, it may affect other units at the same time. For instance, in a multifamily building, plumbing or wiring may need to be replaced in multiple units at the same time.

Multifamily units are larger, so problems that feel more manageable in a single family home can become a bigger deal when scaled up.

Investors may want to compare the different costs (and logistics) of exterminating termites in a small home vs. a bigger multi-unit building (where numerous tenants may need to be relocated temporarily), to name one possibility.

Property Value Appreciation

Single family homes tend to be in higher demand than multifamily residences, which could mean the property is more likely to gain in value. Single family homes are priced largely based on supply and demand.

The more people want them, the higher home appreciation may go up. (Naturally, demand is just one factor among many that can impact a home’s valuation.)

Multifamily buildings, on the other hand, are priced in part on the condition of the buildings. One extra factor in calculating the value of a multifamily building is the potential rent revenue that this sort of property can bring in. If rents go up in the area, the value of the building can rise accordingly. (The opposite is also true.)

Cash Liquidity

There may come a time when a landlord wants to sell. Landlords might no longer want to deal with tenants, or they may need to access the equity wrapped up in their rental property.

Because of the high demand, sales for single family homes tend to be faster, providing investors with potentially easier access to their invested cash.

What Is a Multifamily Home?

Multifamily homes are buildings that have more than one unit and can house more than one family, such as apartment buildings. They could also be a duplex or a triplex.

Below is a list of factors investors might want to think about when deciding whether to pursue purchasing a multi-unit building:

More Rental Income

A multifamily building can be more expensive upfront to buy than a single family home. However, each unit in the building might produce rental income for the owner.

When combined, these rents can total more than the single revenue from a stand-alone house. Opening up multiple streams of income is one of the main reasons investors opt for multifamily properties.

Fewer Vacancy Issues

When a single family home is vacant, the owner’s rental income stream dries up completely. Owning a multiple family building can mitigate this risk of lost income when a tenant leaves or breaks the lease. If one unit is vacant, even for an extended period, other units might still bring in regular rental income.

Economies of Scale

In some ways, property management costs can be simpler for multifamily homes, especially when it comes to economies of scale. For example, say a landlord needs to replace the roof on a 10-unit building. The cost of replacement may be lower, per unit, than if a landlord needs to replace the roof on just one single family home.

Recommended: Guide to Buying, Selling, and Updating Your Home

Diverse Investment Options

Multifamily buildings can offer more property options to investors, too. Potential landlords might invest in anything from small duplexes to large apartment buildings with dozens of units.

Investors can take a more passive role in multifamily investments, as well. Real estate syndication allows a group of investors to pool their resources to buy more expensive buildings than they could afford on their own.

Investments like these used to be the purview of the very wealthy. Since the passage of the JOBS Act in 2012, real estate crowdfunding has increasingly become a more popular option. Buildings funded in this way are generally managed by a professional management company and profits are passed along to investors.

Multi-family investors might want to pursue shares of a Real Estate Investment Trust (REIT). REITs invest in multifamily properties. They trade much like regular stocks, which makes them easy to buy and sell (offering investors more liquidity).

Investors in REITs have no contact with the day-to-day operations of the underlying investment properties. REITs could be a better fit for long-term investors who aren’t aiming to buy and then resell quickly.

💡 Quick Tip: Generally, the lower your debt-to-income ratio, the better loan terms you’ll be offered. One way to improve your ratio is to increase your income (hello, side hustle!). Another way is to consolidate your debt and lower your monthly debt payments.

Financing a Real Estate Investment

Financing an investment property is a little bit different than financing a first or second home, whether it’s a single family home or a multifamily building. As with the buying of a first house, investors may want to check credit scores and review their financial assets before applying for a mortgage loan.

Potential buyers should also examine their debt-to-income ratio, which shows lenders how much debt borrowers have acquired compared to their income. Lenders review this as one among many factors when evaluating mortgage applications.

It’s likely that prospective buyers of investment properties may need to put down at least 15-20% of the property’s listed value — but, it’s not uncommon for lenders to ask for a down payment of 25-35%.

Single family homes can be financed with a conventional mortgage. However, because investment properties pose more risk to loan lenders, interest rates are typically higher than they would be for primary or secondary residences.

Loans for single family houses, duplexes, triplexes, or fourplexes, collectively known as “one-to-fours,” don’t differ very much. In other words, investors looking to buy a building up to four units can do so with a conventional loan.

Loans for apartment buildings with more units, however, may be a bit more complicated. Lenders may consider factors such as:

•   Debt service coverage (cash flow relative to debt)

•   Net income generated by the property (revenue minus expenses)

•   Loan-to-value ratio (the loan amount compared to the value of the property)

There are different, federally backed apartment building loans that certain investors may want to consider, including:

•   Fannie Mae Apartment Loans offer loans of as little as $1 million with 20% down. Fannie Mae offers conventional loans and specialty loans, such as green financing or senior housing.

•   Freddie Mac Apartment Loans offer loans beginning at $1 million, including conventional loans, small balance loans, targeted affordable housing loans, and senior housing loans.

•   Bank Balance Sheet Loans are loans that banks keep in-house. Both traditional and online banks may offer these loans, which they do not repackage and sell to government-sponsored enterprises, such as Fannie Mae or Freddie Mac. The loans remain on the banks’ balance sheets. These loans don’t require owners to live in the same community as the building they’re buying.

•   FHA Apartment Loans, aka HUD 223(f) loans, start at $2 million. They’re insured by the U.S. Department of Housing and Urban Development (HUD), and they are available for the purchase of buildings with five or more units.

The Takeaway on Comparing Mortgage Options

Purchasing a rental property, whether a single family home or a multi-unit building, could be one way to diversify an investment portfolio. A mortgage loan from a private lender may help investors to purchase a stand-alone rental home or multifamily building.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

SOHL0623057

Homeowners sometimes may not realize it’s time to replace their heating, ventilation, and air conditioning (HVAC) system until there’s a major issue.

And the condition of the overall system, along with other factors like home size, type of unit, and local climate might impact HVAC replacement cost.

HVAC system cost varies year by year and per individual situation. Understanding cost considerations for different HVAC equipment, types of systems, and everything replacement entails can help you budget and plan for paying for emergency home repairs.

HVAC System Parts

There are several ways to heat and cool a home that falls under the HVAC umbrella. Yet, most HVAC system parts and components can be grouped into the following categories.

Thermostat

Thermostats monitor temperature and can be used to adjust whether a HVAC system heats or cools a building. Generally, the temperature can be set manually or preset to regulate heating and cooling to a desired indoor temperature.

These systems can be connected to the HVAC system through wiring — or Wi-Fi in the case of smart thermostats. More advanced thermostats can be used to enhance comfort and efficiency by controlling temperature settings for multiple zones throughout a home or building.

Recommended: How to Lower Energy Bills When Working From Home

Heating and Cooling Unit

The heating and cooling unit is the main component of any HVAC system. Common types include furnaces, boilers, heat pumps, and air conditioners.

Furnaces are generally located inside a structure and comprise a heating element powered by gas, oil, or electricity and a blower to circulate heated air through the building.

Boilers are traditionally interior units, too, but circulate hot water or steam to radiators or baseboards located throughout the property.

Air conditioners include condenser units, which are located outside because they produce hot air through the heat transfer process.

Heat pumps also consist of an external condenser, but a key difference is that they can be used to either heat or cool a home. These systems work in conjunction with an indoor blower unit to distribute heated or cooled air.

Filtration

HVAC systems incorporate air filters to remove dust, allergens, and other particles from entering the return-air duct. Usually, air is drawn from multiple locations inside a building to the HVAC system.

Whether filters are the reusable or disposable variety, periodic cleaning or replacement is necessary to maintain optimal performance.

Ultraviolet lights are another option for treating air quality in an HVAC system. Their ability to disinfect the air of mold and pathogens makes them helpful for some homeowners with severe allergies.

Delivery System

Most buildings and homes consist of multiple rooms and may include more than one floor. Distributing heated and cooled air throughout the space requires a system of ductwork and vents.

Many HVAC systems utilize separate supply and return ducts to circulate, filter, and treat air continuously. Supply ducts bring air from the heating and cooling unit to blowers and vents to heat or cool an area.

Meanwhile, return ducts transport untreated air back to the HVAC system.

Exhaust Outlet

Any HVAC system that involves combustion — burning oil, gas, or wood — will need an exhaust outlet to expel harmful fumes out of the building. An exhaust outlet can be its own vent or be connected to an existing chimney.


💡 Quick Tip: Some lenders can release funds as quickly as the same day your loan is approved. SoFi personal loans offer same-day funding for qualified borrowers.

HVAC System Cost Estimates

The type of unit chosen for replacement is a key determinant of cost. Prices may fluctuate whether a full or partial replacement is needed and based on technological advances in HVAC efficiency.

Cost estimates below account for the HVAC unit, any system parts, installation, and removal of old equipment.

Recommended: What are the Most Common Home Repair Costs?

Boilers

Boilers have been used to heat buildings for more than a century and are found in homes and commercial buildings alike. The average replacement cost can range between $4,000 and $10,000 depending on the type of boiler. The average cost to replace a boiler is $7,938, according to Consumer Reports.

HVAC replacement cost for boilers can be higher if fuel tanks, piping, and gas hookup need to be repaired or installed.

Heat Pumps

Despite their name, heat pumps actually can be used to both heat and cool a building. These electric HVAC systems pull heat from outdoor air to heat a building even during cold weather conditions.

When it’s warm out, heat pumps cool buildings by drawing heat from indoor air and expelling it outside.
Depending on the type of heat pump and size of the system (measured in tons), costs average between $4,900 and $12,500.

Air-source heat pumps typically run on the cheaper end of the heat pump spectrum, whereas ground source heat pumps (often called geothermal heat pumps) can cost between $6,000 and $20,000.

Although the upfront cost is significant, lower utility bills and 50-year equipment lifespan could see a return on investment in the long-run.

Central Air Conditioners

Central air conditioners work by drawing moisture from the air inside a building and returning cooled air throughout the structure via ductwork. The system usually consists of one unit located outside but near the structure.

The average cost for installing central air is between $3,800 and $7,900. Prices may be lower for 2-ton or smaller systems, while costs can creep higher if a building requires a 5-ton unit.

Besides the unit itself, the total footage of ductwork to be installed or replaced is a significant cost consideration.

Furnaces

The cost to buy and install a furnace can vary by energy type, total ductwork needed, and the model. On average, prices for replacing a furnace range from $2,800 to $6,800.

Furnaces that run on natural gas or electricity tend to be cheaper to replace than oil-fueled systems.

The total area that will be heated and how well a building is insulated are other factors that will affect the size of the system and potentially increase the cost.


💡 Quick Tip: Home improvement loans typically offer lower interest rates than credit cards. Consider a loan to fund your next renovation.

Other HVAC Replacement Cost Factors

When evaluating HVAC options, the type of system is only part of the equation for determining the final price tag. There are many other factors that can affect how much an HVAC replacement will cost.

Local Climate

The popular real estate mantra, “location, location, location”, rings true for HVAC systems, too. Whether you live in a cold, warm, or temperate climate will have implications for how an HVAC system is designed.

Property owners in warmer climates could face higher prices for replacing air conditioning units since greater capacity is needed. Meanwhile, costs for furnaces can be higher in more frigid regions where heating efficiency is more important.

Building Characteristics

The size, layout, and condition of a building can play a role in HVAC replacement cost.

Excluding geographic influences, larger structures generally require a more substantial HVAC system to match. The total square footage can impact the price for filtration, ductwork, vents, and zones throughout a building.

A home’s design could also affect how much you’ll pay for HVAC installation. More difficult jobs can add additional labor hours and drive up the cost.

Some possible complications to consider are the ease of accessing components ductwork and whether building renovations will be needed to accommodate new HVAC equipment.

Unit Efficiency

The operational efficiency of a new system is another factor of HVAC replacement cost. Although more efficient units are generally more expensive upfront, they can recoup long-term savings through lower energy bills.

While browsing models, keep an eye out for an ENERGY STAR® label to identify the highest-performing HVAC systems. To become certified, this equipment has been vetted by the Environmental Protection Agency and Department of Energy.

For instance, air conditioner models that achieve efficiency scores in the top 25 percent among competitors are eligible for ENERGY STAR® certification.

Paying for HVAC Replacement

The upfront cost of paying for HVAC replacement can be steep. If covering expenses with cash and savings alone isn’t feasible, there may be other ways to pay for these home improvements.

The HVAC unit cost for more environmentally friendly technologies, such as ground source and air source heat pumps, may be eligible for rebates and tax incentives.

Recommended: Home Improvement Cost Calculator

The Takeaway

Even before major components or an entire system needs to be replaced, poor efficiency might increase utility bills. Staying on top of maintenance and knowing the heating and cooling unit’s estimated lifespan could help save money and keep a system running smoothly.

If replacement is necessary for your HVAC system, you may still have a sizable sum to pay after claiming tax credits or manufacturers’ rebates you might qualify for.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

Photo credit: iStock/South_agency

SOPL20051

The latest figures put the average honeymoon cost at around $4,800, Brides.com reports, adding that the average honeymoon lasts eight days.

There are plenty of ways to save on or save for a honeymoon, though.

Here’s what you need to know about the average honeymoon cost and paying for a trip you’ll never forget.

The Honeymoon Tab

The Knot, a wedding-planning platform, cited a pre-pandemic average honeymoon cost of $5,000, based on an internal study of more than 27,000 couples who married in 2019. That is atop the average cost of a wedding, which The Knot put at nearly $30,000.

The average cost of a honeymoon has increased in the past few years, reflecting couples’ desire for more experiential travel, The Knot says, with more than 60% of American couples traveling outside the continental U.S. for their honeymoon.

Of course, the honeymoon outlay could be much higher if a couple goes on a luxury getaway or takes an extended trip.


💡 Quick Tip: Need help covering the cost of a wedding, honeymoon, or new baby? A SoFi personal loan can help you fund major life events — without the high interest rates of credit cards.

Big-Ticket Honeymoon Items

The cost of a honeymoon can depend on location, amenities, and even the season couples decide to travel. Typically the cost will include:

• Plane, train, or automobile travel

• Accommodations

• Any excursions

• Food and beverages

• Taxes, tips, and fees

Essentially, it’s the same as any other big trip. The only extras may come because you want to make this trip the best it can be (and we don’t blame you).

Ways to Cut Honeymoon Expenses

There are still plenty of ways to save money on a honeymoon. As mentioned, location can play a major factor in the cost of the trip, but there is a secret a lot of travel insiders know and don’t share: Shoulder season.

Shoulder season is that awkward time between the high and low seasons of different destinations. It’s not necessarily that a place is less desirable to visit, but merely a less popular time to go.

The shoulder season in the Caribbean is the early fall (in the Northern Hemisphere, September to November), which is the midst of hurricane season, meaning fewer people tend to book during this time. Honeymooners could score great deals on flights and accommodations, and find more restaurant and excursion reservations available.

Hawaii, a perennial honeymoon destination favorite, has shoulder seasons of April through June, after all the school breaks end, and September to December, right before the holiday travel rush.

Check to see when your desired location’s shoulder season may fall, and if you wish, book in this window for the chance to save a little money.

Two other ideas:

Forage for great fares. Another way to cut back on typical honeymoon expenses is to hunt for the best flights possible if you’re traveling by air. This can be done by signing up for newsletter or alert services like Next Vacay, which sends daily emails with cheap flight deals, or similar services like Scott’s Cheap Flights and Skyscanner.

Use points or miles. One more way to lessen the financial strain of a honeymoon is to dig into credit card rewards such as points or miles. Check to see if your points can be used on flights, accommodations, or activities, and use them as you please. Don’t forget to check on any of those frequent flyer miles you’ve got hanging around either.


💡 Quick Tip: Choosing a personal loan with a fixed interest rate makes payments easy to track and gives you a target payoff date to work toward.

Paying for a Honeymoon

There are a number of ways couples can finance their honeymoon. Here are a few.

Join a honeymoon registry. The first, and perhaps most festive for a wedding, is to ask your friends and family to get involved with a honeymoon registry.

A honeymoon registry is a new twist on the wedding registry tradition. Rather than ask for gifts like china that comes out of the closet once every 10 years, couples can instead ask their guests to gift them money that they may use toward their honeymoon.

Some couples take the honeymoon registry a step further by registering at places like Honeyfund or Zola for specific honeymoon items rather than a blanket ask. This can include a specific hotel stay or merely an upgrade, scuba lessons or ski tickets, or dining at one special restaurant during the trip.

Carve out a honeymoon savings fund. Another way to finance your honeymoon is by starting your own honeymoon budget. Once you’ve decided as a couple where you’d like to travel on your first trip as the newly betrothed, you can estimate how much the trip will cost.

From there, you can start a fund where you put in a little each day, week, or a month from income or through any cutbacks you’re willing to make to your personal budgets to turn this dream trip into a reality.

Decide to camp out in Uncle Jeremy’s backyard. And grill hot dogs for days. It will be unforgettable. Just sayin’.

Take out a personal loan. A personal wedding or honeymoon loan can be used for just about anything you want. Yes, that means it can be used to cover any and all costs of a honeymoon.

The Takeaway

The average honeymoon costs around $4,800. But clearly, that number can vary greatly depending on when and where honeymooners travel, for how long, and the level of luxury. With more couples lusting for experiential travel, the average tab has grown.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

Photo credit: iStock/DragonImages

SOPL0623071

A wedding day is a milestone for many people. It’s a day that’s dreamed about and planned for. It can also be expensive. If you’re wondering if you should finance your wedding, here is some guidance when it comes to making that decision.

The Average Cost of a Wedding

SoFi’s most recent survey found that the median cost of a wedding is $10,000. Of course, prices can be higher or lower than that median: A destination wedding or one held in a big city with 300-plus guests will likely be a much bigger expense than having 50 of your nearest and dearest gather in your grandmother’s beautiful backyard flower garden.

Now in 2023, the average cost of a wedding is rising once again, with the average cost sitting at $29,000. In larger cities, many spend $35,000 or more.

Here’s what you need to consider when it comes to financing your wedding.


💡 Quick Tip: Need help covering the cost of a wedding, honeymoon, or new baby? A SoFi personal loan can help you fund major life events — without the high interest rates of credit cards.

To Borrow or Not To Borrow

There are many variables that can affect the cost of a wedding, including the time of year you say I do, the day of the week, the number of guests, the reception venue, and a host of other things. Not to mention, there are sometimes unexpected wedding expenses that are sometimes forgotten in planning, like the cost of beauty and hair treatments and the marriage license, for example.

Temptation can also get the better of you. If you plan on using a wedding loan to pay for your wedding, it’s possible that you will qualify for an amount that’s more than you need. Will you have the discipline not to upgrade your plans and spend more than you can realistically afford? It can be easy to get caught up in the fantasy and have regrets later.

The Pros of Financing a Wedding

• You get your day with all the bells and whistles that you’ve dreamed of. You have the wiggle room to have more guests, a highly sought-after DJ or band, and food that will still be talked about on your anniversary. Mission accomplished in having a special day that will last a lifetime of memories.

• You might be able to borrow enough money to have a relaxing honeymoon, too, which might be nice after the stress of wedding planning.

• You won’t deplete your savings to pay for your wedding. Starting your life together without an emergency savings account can be stressful.

The Cons of Financing a Wedding

• When the wedding is long over, that monthly loan payment is still owed. Depending on the amount and term of the loan, that can be a big commitment.

• Interest rates for personal loans vary based on the borrower’s credit rating and other factors. If you don’t qualify for favorable interest rates, you could end up paying a decent amount in interest over the life of the loan.

• Taking out a loan also increases your debt-to-income (DTI) ratio. If you are planning on near-future large purchases that will require another loan, like a mortgage, having a high DTI ratio might make it more difficult to qualify for future loans, or might affect the rates you qualify for.

Making the Decision

Borrowing money to pay for wedding expenses is a major decision. Being informed of all the details will help you make the best decision for your financial situation.

A wedding loan is a personal loan and is most often unsecured, which means you don’t need to put up collateral to secure the loan. You will, however, need to meet other qualifying factors, such as a certain credit score or employment history, to name a few.

Ideally, you want the lowest interest rate you can get. Fixed-rate loans carry the same interest rate throughout the term of the loan, but a variable interest rate loan can fluctuate throughout the term based on changes in the underlying index rate.

There also may be fees to be aware of, such as origination fees, closing fees, prepayment penalties, and others. It’s helpful to know what all the fees are for and if they are negotiable.

Knowing your total costs and understanding the total interest you will pay over the life of the loan will help you with your decision about whether or not to borrow. Either a lower interest rate or a shorter term may save money in the long run. A personal loan calculator or amortization table can help with this analysis.


💡 Quick Tip: Choosing a personal loan with a fixed interest rate makes payments easy to track and gives you a target payoff date to work toward.

Other Options for Financing a Wedding

If you’re having second thoughts about borrowing to pay for your wedding, you might need to come up with alternatives. With wedding planning, there’s always a Plan B.

• Postpone the wedding. You might be able to avoid borrowing altogether by postponing the wedding to give yourself time to save the money to pay for it. Cutting unnecessary expenses might free up some money in your budget. Or earning extra money by taking on a side hustle might be a good way to add to your savings.

• Use a credit card. Using a credit card to pay for wedding expenses might be another option. While a personal loan might offer a lower rate than a credit card, you might find credit card offers with low introductory rates — perhaps even 0% — for a limited time. If you’re confident that you can pay the card off in full before the introductory rate ends, this could be an attractive option.

• Ask your parents to contribute. Asking parents for money might not be the most appealing option, but it might be a worthwhile consideration. Even though the average age of newlywed couples is rising, which might mean more couples are established financially before they marry, it’s still traditional for the parents of the couple to contribute to the cost of the wedding and it’s common for the couple to have help paying for the wedding.

The Takeaway

Your wedding is a special day, but it’s just one day — then comes the rest of your lives together. Using borrowed money to finance your wedding is a big decision and should not be taken lightly. Taking on debt will affect your budget immediately and your borrowing options in the future.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

Photo credit: iStock/PeopleImages

SOPL0623070