Outside of warranty roof repairs and insurance claims, the prospect of financing roof repairs or a replacement can be daunting, to say the least, with the cost of everything seemingly always on the rise. Fortunately, there are more ways than one to pay for a roofing project, and in today’s post, Earl W. Johnston Roofing shares a look at each.
Cash
Cash is still the best way to pay for roofing projects because there would be no further payment obligations after the project is completed — your roof would be all yours. Some roofing contractors may offer cash discounts, which can be put towards other projects or savings. It goes without saying that cash is also the most difficult to prepare for: it’s not uncommon for homeowners to take years to save for a new roof.
Credit Card
Roofing projects with an estimated cost of $15,000 and below may qualify for credit card installments, and may even be the next best financing option if zero-interest payment plans are available. It is also one of the few deferred-payment options that do not require collateral.
Unsecured Loan
Unsecured or personal loans are a type of loan that don’t require collateral, and can be a practical option for projects with estimated costs between $15,000 and $50,000. Most banks approve loans within minutes, and the funds are usually ready in as much as 10 business days. It’s important to note that unsecured loans typically have longer payback periods with low monthly installments, but with higher interest rates.
Secured Loan
Secured loans are ideal for costlier projects, like a roof replacement that involves a frame rebuild. However, this type of loan involves placing your home as collateral. There are three types of secured loans:
- Cash-Out Refinance. This involves recalculating your existing mortgage and taking out the funds required for your project. Refinancing resets your mortgage payments, which is something worth considering when you’ve made significant progress in your existing mortgage.
- Home Equity Loans (HEL). HEL is like taking a second mortgage on your home. It typically requires short payment periods between 10 and 15 years.
- Home Equity Line of Credit (HELOC). It’s basically like a home equity loan, but you get a revolving open credit instead of one large sum.
Contractor Financing
Reputable roofing contractors offer flexible project financing through partners like RenewPACE. This is ideal for roofing projects on short notice, such as emergency roof repairs or if you need to make up for the deductibles in your insurance claim. The application process takes about a day at the most.
Whatever financing option works for you, you can count on Earl W. Johnston Roofing to provide quality roofing services. To learn more, give us a call today at (954) 989-7794, or fill out our contact form to schedule an appointment.
