Your roof is one of the most important investments you can make for your home. Installing a new roof is a serious financial commitment, and for many people, the upfront costs can make it hard to pay for the new roof in one payment. Luckily, you don't have to worry about coming up with a lump sum because you have financing options! Keep reading to learn more about your options for financing your new roof.
The Personal Loan Option
For homeowners who can repay the loan amount in a short time, a personal loan is a great option. You can make payments in installments over a 3, 6, or 12-month period. In some cases, you might even get a 24-month loan term. The main benefit of a personal loan is you pay less interest, so your roof doesn't cost as much!
Home Equity Loan
If you'd like to take more time to pay, consider a home equity loan. This loan product lets you borrow against your home's equity. Homeowners like the payment terms that come with this type of loan. You can pay the loan off as quickly as you like, or you can spread the payments out over the years to keep your payments as low as possible. Although you pay more interest over the life of the loan with this product, if you have good credit, you're likely to get a lower interest rate than with a personal loan.
Credit Card Financing
Some homeowners with high credit lines may use their credit card to pay for the roof. If you choose this financing method, keep in mind that your credit limit will take a hit. A new roof can cost thousands of dollars. The longer you take to pay off the purchase, the less money you'll have available on the card for emergencies, trips, or monthly expenses. Consider using a card for designated for home repairs only.
Which Is the Right Financing Option for You?
Financing a new roof is a personal decision and one that shouldn't be made without careful consideration. Before you commit to one financing option, make sure you're getting a good price on your new roof. Get 2 or 3 quotes before choosing who will install your new roof. Also, ask the company you end up going with if they have their own financing options. Some roofing companies have in-house financing to make it convenient for their customers.
What If You're Not Approved for Financing?
If you can't get a traditional loan to cover the replacement costs, consider filing a claim with your insurance company. Has the roofing company determined the damage to your roof was caused by storm damage? In a case like this, your insurance company may cover the replacement costs minus your deductible.
Replacing a roof costs a chunk of change, but it's necessary to ensure the structural integrity of your home. A new roof also increases your home's value, which means you're adding equity to your home. So, if you take out a home equity loan, the new roof could end up paying for itself in no time.