4 Ways to Pay for a New Roof | RoofCrafters
For many homeowners, there are five words that make them cringe: “time for a new roof”. But the total cost for roof replacement doesn’t have to come out of your own pocket all at once – or even out of your own pocket at all, for that matter.
These are four ways homeowners pay for major roof repairs, including total replacement.
This modern LA-style home wears an elegant black metal roof.
Loans for Roof Replacement
Some roofing companies offer financing for your project. You can make monthly payments for a number of years (two to twelve wouldn’t be out of the ordinary) saving you from depleting your savings account all at once.
You’ll go through an application process just as you would with other types of loans. The roofing company (or lender they’re partnered with) will ask for your income, credit score, debt-to-income ratio, and the loan amount you’re seeking. Those factors will determine the terms for which you qualify for, including interest rates.
Roofing loan terms may be up to twelve years. For a 2,000 square foot home’s total roof replacement with standard three-ply shingles, you may be looking at $100-150 per month for a twelve-year loan term. But this is just an estimate.
Have a property in the central Texas area that needs a new roof? Get pre-approved for a roof replacement loan through RoofCrafters.
Most homeowners with mortgages will have home insurance. Most home insurance policies will help cover roof replacement costs.
The portion you end up paying will be your maximum deductible amount. If your roof costs $10,000 to replace and your deductible is $1,500, your home insurance company will pay $8,500. You may also receive another payment for depreciation.
Spanish style homes owe their charm their signature copper-colored tile roofing systems.
Will Your Roofer Help Coordinate with Insurance?
Not every roofing company is willing (or able) to guide you through the process with your insurance company. It’s a big plus to have your roofer not only be an installation expert, but also as a helping hand with paperwork.
Besides convenience, another big advantage of having a roofer that works with your insurance is that they may catch mistakes made in the insurance company’s evaluation.
First, an inspector from your home insurance will physically visit your home and evaluate your roof. They’ll mark damages with spray chalk and fill out an evaluation sheet. The evaluation sheet determines how much money they’re willing to pay out for your roof.
However, if your roofing contractor notices, for instance, that you actually have higher-grade shingles than the insurance inspector noted, your insurance payment may increase. You may also need gutters replaced; that’s another added expense your insurance will be responsible for.
It literally pays to have an experienced roofer coordinate with your home insurance company.
Though technically credit cards are also loans, they are different from personal loans or loans specifically meant for roof replacement.
As long as your credit limit allows, no one will stop you from paying for a roofing job with a credit card. However, weigh your options: what will the difference in interest be between your credit card and a separate loan? Typically credit cards carry higher interest rates.
Some credit cards will allow you a no-interest period upon approval. Some of these periods may last up to one year. If you have a savings account to back you up and your credit card is at zero interest, there’s no reason you shouldn’t use your credit card to pay for a roof replacement over the span of the no-interest period.
This sprawling Texas property most likely sports a “weathered wood” shingle variant from GAF, the country’s leading shingle manufacturer.
This financing option would only be available if you currently have a home mortgage. Cash-out refinancing takes money from the current equity you have in your home. If your home is worth $300,000 and you have $100,000-worth of equity, you can pull cash from the $100,000. This cash can be used for whatever you please – including roof repairs and replacements.
A second mortgage option, if you’re about to purchase a home with roofing issues, is to “bundle” a renovation loan with your purchase. Both the FHA program and conventional mortgages offer renovation loans. Ensure your loan officer is fully educated on the ins and outs, as they are a bit more involved than a simple purchase.
Get Started with RoofCrafters
Not only is RoofCrafters a highly experienced and trustworthy roofing contractor in central Texas – but we’ll also help with financing. Whether that be with your home insurance company or if you need to find financing, we’re here to help.