Replacing your old roof will significantly improve your home’s energy efficiency, visual appeal and comfort levels. However, this project can involve significant costs. Fortunately, various payment options are available to help you cover the cost of your roof replacement.
Here are things you need to know about financing a new roof.
What to Look For
You should consider several key factors when comparing lenders and creditors. These include low-interest rates, fast funding, low or no fees, repayment term and lower maximum or higher maximum. If you need a big lump sum for your roofing project, go for a loan with a higher maximum. If you’re thinking about paying partially in cash and only need to finance a small amount, make sure that the amount you’re borrowing is at or above the lender’s minimum.
Obtain Multiple Estimates
Experts recommend obtaining at least three estimates from different roofing contractors before hiring one. This step is especially important if it’s your first time planning a roofing project. It will give you an idea about the cost of your project and how much you need to borrow. You should compare several estimates to ensure you’re choosing the most competitive rate for the best quality work. Make sure that the estimates include both material and labor costs.
What Are Your Options?
Home Equity Loan – You can apply for this type of loan if you have sufficient equity in your home. It can be stretched to a couple to years to reduce your monthly payments.
Home Improvement Loan – You can apply for a home improvement loan despite not having enough home equity.
Credit Card – Paying through credit cards should be your last resort when it comes to financing your roofing project. This option could work if the roof needs to be installed as soon as possible.
Cash – Consider paying in cash if you have enough money to cover the cost of your project while still having savings or funds for emergencies.