Roof replacement is a significant financial investment for most homeowners. While replacing your roof will save you further problems down the road, it is costly. Fortunately, there are several financing options available for new roofs. Understanding your available options can make the payment process less stressful. So, here are five things to know about roof replacement financing.
1. Financing Options for Roof Replacement
When you have extensive roof damage and need a complete replacement, you may need a flexible way to pay for it. Here are multiple financing options to consider, including:
- Mortgage Refinancing: This allows you to obtain a lower interest rate and shorten your mortgage term. Just make sure the interest rates are low enough to make this option a wise financial decision.
- Paying through Insurance: Your homeowner’s insurance can pay for your roof replacement if your roof was damaged by a covered peril, such as a storm or fire. Check with your insurance provider if you’re eligible for reimbursement. They’ll likely cover a large portion of your cost unless they determine that your roof was not adequately maintained or neglected.
- Personal Loan or Home Equity Line of Credit: Traditional credit unions and banks offer personal roofing loans you could use for a roof replacement. Whether it’s a personal or home equity loan based on the equity built up in your property, consider the interest rate and payment period to ensure you can comfortably furnish the loan.
- Pay with a Credit Card: With a strong credit score and history, you could qualify for a 0% interest credit card. You can then use the credit card to pay for your roof replacement without worrying about interest piling up.
2. Are You Required to Pay Upfront?
Any reputable roofer will not ask you to pay in full for the roof replacement project before the work commences. Be particularly wary of roofing contractors who demand full payment upfront. Paying a deposit is standard with many roofers, so enquire what the roofer requires before signing anything. Typically, a roofing company will ask for a deposit ranging from 10% to 30% of the project’s total cost before the work begins. However, a reputable roofer should be financially stable so they can afford to pay for the materials and labor upfront. At Titan Siding and Roofing, we think it isn’t right to make you pay for work before it’s done.
If your roofing company provides financing, it’s common to pay in installments. You’ll need to discuss this option with your roofing contractor since some companies may not accept payment in installments. Once you decide on a timeline for payments, ensure this is included in the contract to hold both parties accountable.
3. How to Get Financing
Many homeowners often delay acting on roof replacements due to the financial costs. It can cost you much more in the long run when you delay replacing your old roofing system. The longer you wait, the riskier it becomes to trust your old, worn-out, or severely damaged roof.
Some potential costs and costly problems could crop up when you wait too long to schedule a re-roofing job.
- Excessive roof leaks and water damage
- Mold removal and remediation costs
- Rodent and vermin removal
- Paying for a double-tear-off job
- Your roof becomes more susceptible to storm damage
- Denial of roof damage insurance claims
- Structural damage & house fires
- Reduced energy efficiency levels
- Decreased property value
4. Work with a Roofer Who Offers Financing
Certified roofing companies usually work with financing partners who can make the payment plan for your new roof easier. They can help streamline your roof financing process through payment plans personalized to your situation and needs. Due to economies of scale, a roofing contractor can work with lenders to find competitive loans and credit cards. Moreover, they make every effort to simplify the financing terms and processes. Some roofing companies even offer a useful monthly repayment estimator tool to help you get an idea of how much you’ll be paying.
5. How to Get Financing Through Your Roofer
If your roofing company has partnered with a home improvement financing company, they’ll give you a choice to apply for the available loan options (none of them zero-financing). You can easily compare your financing options and find what is best for you. Once you apply for roofing company financing, your roofer will quickly show you the cost of the roof replacement project and pre-qualify you within minutes.
One advantage of roofing company financing is they have no dealer fees to escalate the customer’s interest rate. Besides, the roofing company doesn’t get any compensation for the loans. They actually pay an annual fee to offer this convenience.
If you’re planning to replace your old, worn down, or damaged roof in Cincinnati or surrounding communities, Titan Siding and Roofing has you covered. We have several years of experience installing, repairing, replacing, and maintaining residential and commercial roofs throughout the Greater Cincinnati area. Moreover, we offer flexible roofing financing options, so you don’t have to worry about paying anything until your roof is complete and you are satisfied with it. Contact us today to schedule your free consultation and roofing inspection!