Roof financing options can be a good idea for new roofs whether planned or a result of some damage due to weather like hail or windstorms is a significant home improvement investment. After all, your roof is one of the most important components of your home, it protects your family from outside elements and severe weather.
Financing the Next Roofing Project
The cost of a new roof depends on various factors and that is why it varies from time to time and type of material. Some of the factors are listed below:
- Size and complexity of the roof
- The type of roof shingles used in roof
- The roofing contractor hired for the job; labor rates vary season to season and material to material.
- Geographical area of your home
These are some of the variables which play a role in making it difficult for you to save for a roofing project accurately and this is where roof financing can help you.
Roof Financing Options: Terms Explained
Let’s have a look at a few basic ideas and words which usually the lenders tell the homeowner before going to the reasons why homeowners choose to finance their roofing projects:
- Term: It is the length of the period in which you have to repay the loan, usually expressed in months or years.
- APR: It determines how much the lending company is charging you for the loan of the money. It may or may not include the charges, but it does not include the effect of interest, usually the interest compounds monthly. APR is a useful tool for comparing loan products.
- Principal: It represents the total amount of money that is borrowed at the onset of the loan.
- Interest: The cost of your loan over and above the principal amount.
Why Roof Financing Options May be a Good Idea for You?
Usually, people forget about their roofs after they buy their homes or build one. The roof only gets their attention when it starts becoming a problem, which means an issue has started to occur there like leaking roofing shingles. This could be either because of the age of the roof or severe weather conditions.
If you have saved up some money for your roof maintenance, then it is great but, in many cases, people are left unprepared when the roof gets badly damaged and needs an urgent repair. Even then if the damage is covered by your insurance, you may be left with a hefty deductible amount that is not in the budget. You can even decide to replace the entire roof with new and improved materials rather than do a roof repair.
Reasons to Consider Roof Financing Options
Enjoy Low Monthly Payments
With this method, you are asked to pay in installments. When you finance a new roof through an independent roofing contractor in the Owens Corning Roofing Contractor Network like Legend Roofs, you can benefit from low monthly payments. This will not put a burden on your budget. This method will let you have your roof replaced instantly and you won’t have to pay until later. Instead, you can pay in installments.
If your payment terms and credit history are good, you can benefit from the low-interest rates during the life of the loan. For example, an unsecured home improvement loan of $10,000 for 120 months results in a low monthly payment of $132 with a 9.99% APR.
Defer an Upfront Payment Without Interest
Homeowners should consider loans with 0 percent financing upfront with no prepayment penalties if they want to delay a lump sum payment in order to avoid interests. Installment loans that offer six months of no interest and no payments let you defer making any payments at all during the first part of the loan.
In this case, you can pay the entire loan in any period before the six-month deadline, or you can make high-end monthly payments at the updated interest rate.
Some loans might delay the payment process for a set period; however, once that time is up, you can begin making regular payments at the fixed interest rate. This is helpful in such circumstances where you are short on cash but you need to start the roofing project without delay for any number of reasons.
Quick Approval Process
Thanks to modern technology, it is easy to apply for roof financing and the process is seamless and easy. You can apply for roof financing online through the mobile app or can call in eliminating the paperwork. For this, you can go for the electronic signature. Once the application is submitted, approval notices usually arrive within minutes.
Roof Financing During COVID-19
Due to the potential impacts of COVID-19, one should make a proper plan when it comes to changing the roof in these tough times. Roof financing lets you protect your investment and keep your family safe without having to worry about making large, lump-sum payments.
An Investment with Attractive Returns
According to the 2021 Remodeling Impact Report from the National Association of the Remodeling Industry, new roofs bring a significant impact on the homes and it helps the homeowners to recover this cost above 100 percent when they sell their home.
It was also seen that new home buyers always tend to buy those homes that have installed new roofs which means you have a better chance of selling your home if you get a new roof in time. This will also help you in getting a higher price for your home.
When you choose roofing financing, you get the best of both worlds. You can invest in your home for the future, can address other issues related to the roof so that you get the right price for your home.
Roof Financing Options FAQs
How long can you finance a roof for?
Loan terms vary according to the lender. Shorter loan terms mean you have to pay the debt sooner, maybe with a less interest rate. However, if you want to increase the time of the loan, the interest rate will also increase with it.
Do Roofers offer payment plans?
Yes, some of the independent roofing contractors in the Owens Corning Roofing Contractor Network offer payment plans to make the replacement of roofs affordable and easy for people.
However, payment plans can vary depending on the interest rates, the requirement of the homeowners and the terms of loans.
Can my Insurance pay for a new roof?
It all depends on your policy and the circumstance surrounding why you need a roof. If it is because of a weather condition, the homeowners can get the benefit of their insurance. However, if you want to replace it because of the age factor, then the insurance might not apply to it.