Residential Roof Replacement Financing Options

Residential Roof Replacement Financing Options

Five Replacement Financing Preferences

These are five proven financing options for any roof replacement project:

1. Cash

Many individuals prefer this option. This method does not require you to have good credit, and there is no need for interest payment. Unfortunately, not every homeowner is having a good amount of cash for an unexpected or sudden project.

2. Personal Loan

You may decide to make use of personal loans to finance your roofing, even though several lenders out there have restrictions. The average interest on a long-term loan is lower if you have an excellent credit score. Taking personal loans have several set repayment plans, and the lucky thing is that funds from personal loans can be received within the same day. The major downside is that a bad credit score can lead to an increase in interest.

3. Credit Card

Using your credit card to pay your roof replacement bill seems like a bad idea, but the fact is you may end up paying it off interest-free if you luckily qualify for an APR promotion on your credit card. However, to do this, you need to have excellent credit. The main disadvantage of this option is that the credit limit may not be enough to cater for the roofing expenses. Finance experts can help you through this particular option to suit the project you have at hand.

4. Home Equity Loan 

For individuals that do not have excellent credits, this option is the best. Lower interest rate and opportunity to pay interest from taxable income deducted are some of the advantages of a Home Equity Loan since your home is the collateralized used for the loan. One of the major drawbacks is that you could lose your property if you default. Besides, some lenders tend to charge high processing fees for the loan.

5. Contractor-Specific Loan

Do you know that some roofing contractors are into the business of offering loans for roof replacements? You don’t need any home equity for this option. Since the contractor is the mediator, you have higher chances of getting a better rate. With that said, note that there will be numerous considerations when it comes to looking for a bank. Even the contractor may choose to skimp on his efforts for you, and you’d lose out.

Conclusion

To get started on your roof replacement projects, turn to your roofing contractor to seek the best possible financing options available. Several roofers are ready to help you out and make sure you achieve your aim. But don’t forget you need to stay focused on paying back your loan, to avoid putting your property at risk.

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