If you are a homeowner and you’re facing a roof replacement, you already know the costs of a new roof can be staggering. Depending on the materials you choose for your new roof, you can expect to pay between $7,000 and $15,000 for a new roof. Not many people have $15,000 in cash lying around their house ready to be used. If you need a new roof, here are some ways you can finance it.
Will Insurance Cover Your New Roof?
If your roof needs replacing, you may find out that you will only be out of pocket for your home insurance deductible. Having your roof inspected before you begin the roofing process is critical. A roof inspector might find that you have damage to your roof from a recent storm, for example. If storms cause damage to your roof, or trees crashed onto your roof and cause damage, your insurance company should foot the bill for your new roof.
For homeowners who have to replace their roofs due to wear and age, there are often financing options available.
Financing from a professional roofing company
CCR Roofing, like many professional roofing companies, offers financing for its customers. Depending on your credit, you may be able to get your roof financed at 0% interest. If you are thinking about financing your roof through a professional roofing company, the company will want to come out, do a roof inspection, and give you an estimate on the cost of a new roof. That is a great time to discuss financing with the roofing company.
Home Equity Loans and HELOCs
Both home equity loans and HELOCs (Home Equity Line of Credit) can be used to finance a new roof. Home equity loans and HELOCs are similar in that you use the existing equity in your home to finance your roof replacement. If you choose a home equity loan, you will get cash from a lending institution that you can use however you choose to. Home equity loans work much like personal loans or many business loans. They have a fixed rate of interest, and you begin paying on the loan immediately.
Home equity lines of credit operate more like a credit card. You will be approved for a fixed amount, and the interest rate varies over time. You must use a HELOC for specific items, such as a new roof. There are specific timetables if you decide to finance your roof through a HELOC. There is a time period for you to take the cash out, and then there is a time period for repayment. HELOCs are a great way to get several projects done at once.
Refinance your home and get cash out
Unlike home equity loans and home equity lines of credit, refinancing your home doesn’t require you to pay the money back to the lender. Instead, you are asking a financial institution to refinance your home mortgage and get some cash out from the value of your home. Your only out-of-pocket expense is the closing costs you have to incur through the financing process, which is much less However, you will want to be careful that you aren’t refinancing to a higher interest rate than the one you currently have.
Depending on the limits on your credit, you can choose to finance a new roof by using your credit card. Keep in mind that credit card companies, in general, charge you a higher interest rate than you could get from a lender such as a bank or credit union. However, if you have a credit card that rewards you with cashback or points toward travel, this may be a great option for you.
Financing a new roof isn’t easy because of the costs involved. If you are worried that you need a new roof, it is important to have a professional roofing company come out and conduct a roof inspection to determine what you need. At CCR Roofing, we are always happy to come out and inspect your roof to help you decide if you need to replace it. We can give you an estimate on a new roof, and then we’ll be happy to sit down and discuss financing a new roof with you. Why not give CCR Roofing a call today?