Financing Options for Your Roof
Financing a new roof is becoming more common because homeowners can get the roof they need without breaking the bank. Whether you need a new roof because you are about to sell your home or need one due to damage from a storm, age, or neglect, there are options to explore.
Homeowners Insurance
If there is damage to your home due to a storm or sudden incident, it is best to begin by reviewing your homeowner’s insurance and plan coverages. It is essential to know what your deductible will be and what the process is if you are considering filing a claim.
A typical insurance claim will not cover normal wear and tear or any issues that may have occurred after your roof has exceeded its lifespan. Even if your insurance will cover your roof, you could still be charged a large deductible.
Roof Financing Options
Paying for a roof replacement can be expensive, but you have options and resources available to help you. Let’s take a look at some of the most popular financing options for a new roof.
- Home Equity Loan – A standard option for financing a roof replacement is to take out a home equity loan, which allows you to borrow around 80 to 90% of the difference between what your home is worth (or could sell for) and what you owe on the mortgage. It’s similar to a mortgage in that you take out a lump sum and pay it back over monthly installments, and it’s often referred to as a second mortgage.
- HELOC – A similar option to a home equity loan is a home equity line of credit or HELOC. A home equity loan is comparable to a personal loan; a HELOC is like a credit card. With a HELOC, you take out a line of credit against your home and only use what you need and pay for what you borrow. But where a HELOC gets tricky is in the details: loans are often limited to 85% of the home’s value, and you might be subject to a variable interest rate (which, combined with how much you borrow, makes predicting your monthly payments difficult). Whether you choose to go with a home equity loan or line of credit to pay for a new roof is up to you, but make sure you weigh your options before deciding.
- Personal Loan – If you’re considering taking out a personal loan to pay for a new roof, the good news is that you have a lot of options. A personal loan is often fast to secure, which is good if you’re experiencing an emergency due to substantial roof damage, and it’s unsecured, which means that you don’t have to commit your home as collateral. You simply have to agree to the terms and make the payments. The drawbacks to a personal loan are that you can’t claim a tax deduction on the interest you pay (like you would with a home equity loan), and the interest rate will most likely be higher than a home equity loan. With that said, a personal loan would probably come at a lower interest rate than using a credit card.
- Credit Card – Using a credit card to pay for a roof replacement or roof repair has become relatively standard practice, as it’s fast to secure and can offer a higher limit than a personal loan, depending on your situation. There are plenty of credit card options for getting 0% APR, which can help lower your total repayment if you have money available to pay it back quickly.
- Roofing Company Financing – Some local roofing companies offer financing options to cover the costs of replacing your roof or repairing the damage. They do this by partnering with a bank or financial services company to help control costs based on the project and your budget. Financing through a roofing company can be an affordable option based on your scope of work and timing.
Why Roofing Company Financing Can Be a Good Idea
Repairing a damaged roof isn’t always something that can be paused, even when finances are tight. If you have an insurance claim, financing can help you cover the difference between what insurance will pay and the roof system you want. You may also be able to finance your insurance deductible. We want you to be equipped with all the knowledge needed to make the best decision for you and your family when it comes down to it.
Roof Financing with J&K Roofing provided by Pure Finance Group
- J&K Roofing offers financing provided by Pure Finance Group with approved credit
- Low Monthly Payments provide the flexibility to pay at the speed you feel comfortable with
- Delay Payments for up to 1-year if you have an emergency project but are short on cash at the time
- Customized Planning to provide you options that you can comfortably afford
- Competitive Interest Rates to keep your money working for you
If you’re unable to pay for your roofing repairs out of pocket by cash or check, you still have plenty of options. But the longer you delay getting your roof repaired or replaced, the greater your risk of incurring more damage and expense. Make sure your roof is in good shape with regular roof inspections—before winter or storm season hits.
Talk to your local roofing experts to get an idea of what kind of work you need to do and what options are available. Contact J&K Roofing today for help with your residential roofing needs in the Denver Metro, Front Range, Colorado Springs, and Northern Colorado areas.