Check Jasper engines, they specialize in remanufactured engines. I think they do Toyota as well. They have certified shops that do the install and are backed with a warranty. Basically, they take your old engine out and keep it as a core exchange, and replace it with a remanufactured engine.

I had this done with an old Jeep TJ 4.0 which broke a piston skirt and proceeded to destroy the cylinder wall. The Jasper remanufactured engine never gave me any problems. I don't recall exactly, but I think it was a little over $5k installed (back in 2010) and had either 2yr 24,000 mile, or 3 yr 36,000 mile warranty on it. The majority of the cost will be labor for removing/installing the engine.

For the money you've been quoted I would definitely suggest considering a remanufactured engine with a warranty over some rando piece from a junkyard.

I think the website is jasperengines. It's not the best site, but you can see if there are shops in the area and contact them for a quote. At least it'll give you another option / pricepoint to maybe help decide what you want to do.