Roof Financing: Benefits, Options, and Tips

A major roof repair or replacement is a significant investment that some people might not have money for. Roof financing gives you the option to pay for such investments without wiping out your savings. Read on to learn about the benefits, options, and tips for roof financing.



Benefits                                                                                                 

A roof repair or replacement loan can benefit you in multiple ways. Some of the potential benefits include the following:

Prevent Worse Damages

Roof damage usually starts as a minor problem before progressing into full-blown disasters. For example, a storm can blow some shingles off the roof and expose the other structures. Such damage might be serious, but a roofing contractor can replace the shingles and preserve the roof.

However, you might have to replace the entire roof or huge chunks of it if you delay the repair too much. For example, water might penetrate the roof, or another windstorm can lift the remaining shingles and wreck the whole roof. Get a loan to fix the initial damage before it worsens.

Affordable Repair Cost

Extreme roof damage can cost you in multiple ways. For example, the damage's extent determines the repair cost. Consider initial roof damage that requires $2,000 to fix. The damage can cost several times that amount if you delay repairs. Thus, a repair loan can save you money in the loan run.

Time the Work Right

Roof financing can also help you repair your roof during the low season. That way, you can avoid the high-season roofing and its multiple problems. For example, you can choose your preferred roofing contractor during the low season. Your contractor of choice might be fully booked if you wait for the high season.

Options

Compare roof-financing options from different lenders before you apply. Some options you can use include the following:

Home Equity Loan

Your home equity is the difference between your home's value and your outstanding mortgage. The more you have repaid your mortgage, the higher your home equity is. Mortgage lenders issue loans against home equities, loans that are second mortgages.

Credit Card Loan

Some roofing contractors also accept your credit card payments. Credit card loans are especially useful for relatively minor repairs you can easily repay.

Personal Loan

Many financial institutions offer personal lines of credit for home improvement projects. Ask your bank if they have such a facility, but also consider other institutions.

Contractor Financing

Some roofing contractors provide financing for major roofing projects. However, don't pick a contractor solely based on their loans. Instead, look for a contractor that can repair your roof based on their skills, experienced, and license status. You can get financing elsewhere if your chosen contractor doesn't provide financing services. 

Government Loans

The government also has several loans for home improvement projects, including roof repairs or replacements. Eligibility may depend on income, demographics, and location, among other things. Ask your roofing contractor for details of such programs in your area.

Tips

Always do due diligence before taking any loan, including roof replacement loans. Check out these two helpful tips.

Understand the Financing Cost

Understand the loan cost, so you know what you will repay to clear the loan. Apart from interest, some lenders also charge commissions and loan origination fees, among other charges. You can only compare different financing options if you understand their overall costs.

Compare Loan Versus Waiting Cost

Compare the financing cost from the cost of waiting to repair the roof with your own savings. Roof financing only makes sense if it's cheaper than saving for the repair money.

All American Roofing is a full-service roofing company with significant investment in the industry. We work with both residential and commercial clients. Contact us for a quote, and enjoy our affordable and professional services.