Want a New Roof? 3 Ways to Finance a Total Replacement
You can’t go without fixing a damaged roof for long. Water entering your home will eventually ruin the rafters, window frames and more. You also risk seeing your home condemned due to mold, wood rot and many other potential safety hazards. Many homeowners already know the risks inherent with not fixing a damaged roof, but lack the funds for repairs. If you don’t have the liquidity, don’t panic. Loan options may exist for you.
The word “refinancing” sounds like an ominously involved process. All the term refers to is paying one loan off with another loan. Sometimes, taking a second loan out makes sense given the circumstances of the borrower. People frequently refinance their home mortgage to acquire a lower interest rate or better terms. Perhaps you could refinance your mortgage with the intention of procuring additional funds to pay for the new roof.
Taking out a second mortgage to pay for a new roof or other renovations is more common than you may think. Again, not everyone has the capital to pay the costs of a new roof. Banks could be willing to approve a new mortgage for your repair plans.
Home Improvement Loans
Rather than go the refinancing path, many opt to go with home improvement loans. Home improvement loans have many advantages over other finance options such as cash. A secured home improvement loan, one in which you use your home as collateral, commonly features low-interest rates. Unsecured loan options exist for those with sufficient income and a good credit score. Approvals on a home improvement loan vary based on the lenders. Good candidates likely won’t have trouble fielding offers.
Contractor Financing Loans
Roofing contractors know not everyone has the cash to pay for a major roofing job. They also know some homeowners are unable to receive approvals on loan applications with banks and credit unions. So, the roofer may offer special financing deals to their customers. The contractor may more easily approve the agreement but know that the interest rates may be high. The financing may also require repayment in a short period.
Financing with a roofing contractor probably shouldn’t be your first plan. However, if no alternative exists, then the contractor’s deal could be the one thing allowing you to get a damaged roof fixed or replaced.
Don’t let troubles with your roof go for too long without fixing them. Look for financing options as soon as possible, and then give us a call!