Your roof is designed to protect your home from the elements all year round. Unfortunately, it can be damaged due to natural wear and tear or raging storms. This may leave you no choice but to replace your roof. Putting off a roof replacement can make your home more vulnerable to water damage and pose a safety hazard. Roof replacement is an expensive project; not many homeowners can pay for it out of pocket. So, if you need a roof replacement, financing can be an option. Here are some popular ways to finance the replacement of your roof.
1. Paying with Insurance
Your homeowner’s insurance coverage protects you from financial loss resulting from fire, theft, or damage from many natural disasters. Your insurer will pay for your roof repair or replacement if it’s damaged for a reason other than natural wear and tear or poor maintenance.
Always speak with your insurance provider to determine if your roof damage is eligible to be covered by your homeowner’s insurance. Also, find out what your deductible is and the process of receiving the payment.
2. Paying with Home Equity Loan or HELOC
A home equity financing allows you to borrow against available equity you’ve built in your home. It is the difference between your property’s market value and the balance you owe on the mortgage. If your loan-to-value ratio is at least 85% or less, a HELOC may be a good choice. A home equity loan or line of credit usually comes with a lower interest rate than other financing options. This is because your home is used as collateral to back the loan. However, you’ll need to have a strong credit score and a steady stream of income to qualify.
3. Personal Loans
You can get a personal loan at a competitive rate to finance your roof replacement. With a personal loan, a traditional bank or credit union offers you a lump sum upfront to finance your roof replacement. The amount offered plus the interest rate is charged over the life of the loan based on your credit score and history. Be sure to review the terms of the loan, including the monthly payments and interest rate, before signing anything to ensure you’re getting the best rates.
4. Credit Cards
You may qualify for a 0% APR credit card as a balance transfer offer or a new card member if you have strong credit. Credit cards may provide higher spending limits than personal loans, but watch out for the interest. If you can pay back the loan in a set amount of time, there could be no interest if you’re a new member. As a result, you can save a significant amount over the financing term. However, these credit cards will have a shorter repayment timeframe than any other loan type.
5. Roofing Company Financing
Many reputable roofing companies offer financing for roof replacements. They understand the cost to replace a roof is often too high to pay out of pocket all at once.
Compared to personal loans and home equity loans, the process of obtaining financing through a roofing company is much more straightforward. More importantly, roofing company financing could spead up the replacement process since the same roofer will be replacing your roof.
Before Deciding on Financing
Before pursuing any roofing finance avenue, consider the cost of your roofing replacement. Your roof’s current condition and size dictate the expense. The cost may affect which options are available to you. Working with a skilled roofing contractor will provide a better cost estimate so you can make a more informed decision about your financial needs. Be sure to read the fine print of any financing option to ensure the required payment fits within your monthly budget.
Whether through insurance coverage, roofing company financing, or roof loans, you can pay for the cost of your new roof over time instead of all at once. Always consider your budget in making a financing decision. Consider the fees, repayment term, and interest rate before making a selection for your home improvement project.
Work with a Trusted Roofing Contractor
At StormForce, we have decades of experience replacing roofs in Jacksonville, FL. We also provide competitive roofing financing to make the process of replacing your roof affordable and seamless. Contact us today to begin the conversation with one of our experienced roofing consultants!