One of the most expensive projects to tackle for your home is a new roof and it always seems to pop up at inconvenient times. With bills, kids, school, braces, and life in general it may not always be possible to pay in full for your new roof.
When you have so many financial responsibilities, it can be stressful to attempt to figure out what works into your budget. And unfortunately, not everything with the cost of a roof replacement is set in stone.
This process should be easier for you. Learning the options of how you can pay is the first step to alleviating some of the stress you may be feeling. With these options, you will have an easier time finding a payment plan that best suits your needs.
With over a decade in the roofing industry, we have worked with every type of customer. From third-party financing, credit cards, checks, and insurance, we’ve seen every payment method. We understand that life doesn’t always revolve around home improvement projects, and that’s why we’re here to help you find the best payment option.
One of the most common worries we receive is that the customer will have to pay in full. But that’s not realistic- there are several payment options that allow you to pay over time.
Payment installments are the most common way to pay for an expensive project such as a new roof. Here are the six options available to you so you can begin to plan for that next big roofing project.
Six Ways To Pay For A Roof Replacement
Let’s be honest, paying in full for a roof replacement (which can cost upwards of $9,500) isn’t realistic for everyone. In fact, it can be anxiety-inducing.
Fortunately, that’s not your only option. There are several ways you can pay for your roof replacement that won’t leave your bank account looking scarce.
1. Cash or Check
While this option isn’t ideal for everyone as it requires paying the full amount at the time of purchase, it is still an option.
If you have the funds to cover a full roof replacement, you can spare yourself from the monthly payments by paying up-front.
Is there a discount associated with paying for a roof with cash or check? Typically, no. Many companies don’t offer discounts for this method, even if it is their ideal way to receive payment.
However, it does save you from some of the fees associated with other payment methods. By paying with cash or check, companies avoid those credit card company fees which are usually 3% of your total. If they don’t have to pay it, that cost is not passed down to you.
2. Pay by Credit Card
Depending on the limit of your credit cards, you may be able to pay the full amount on your card and then make the monthly payments to your credit card company.
With this method, the cost of the credit card fee from the roofing company will be passed down to you (a.k.a. that 3% charge we talked about earlier).
There will also be additional interest charges from your credit card company at the end of your monthly period. This may add extra costs to the total of your roof replacement. However, these fees could be less than the interest charges from other methods.
3. Financing Through Your Roofing Company
Many roofing companies offer in-house financing through a third-party company. Third-party financing allows them to work directly with the company instead of having to manage it yourself.
With this method, you can also choose your financing options at your initial estimate appointment without having to leave your home. It saves you the hassle of researching additional options and travel time to check out different companies.
Make sure to check in with your sales representative to see what financing options your company offers. Often, there will be multiple choices ranging anywhere from a year to 10 years with little or no interest.
4. Home Equity Loans
Home equity loans allow you to borrow against the value of your home. Traditionally, these are in the form of a second mortgage.
Taking out a loan allows you to work closely with a familiar bank or credit union. If you already have banking representatives that you work with and trust, this could be the ideal option for you.
Your bank can walk you through the steps of taking out a loan against your home and continue to keep up with managing your monthly payments.
5. Personal Loans
Personal loans are for those who do not want to take out a second mortgage. This option allows you to take out the loans without putting any of your belongings in danger.
A personal loan is similar to a home equity loan. This option allows you to work with your bank instead of a third-party company. If you would like a more personalized experience, this option could be for you.
It is important to note with any loan that there will be interest involved. Interest can add additional costs to the overall price of your roof replacement.
When looking at loan options, consider the amount of interest you will accumulate by looking at the interest rates. By doing this, it will help you gauge what loan option is best for you.
6. Homeowners Insurance
If you have homeowners insurance, you might be in luck!
Homeowners insurance will help cover any roof damage that is caused by what they classify as an “Act of God.” An “Act of God” is an unavoidable act of nature, such as a hurricane or storm damage.
Depending on how much damage is on the roof or whether or not your shingle is still in production, you may be able to get repairs or the total cost of your roof covering.
Want to learn more about insurance coverage? Check out Will Insurance Cover My Roof Repairs or Replacement?
How Do I Know Which Payment Option Is Best For Me?
“How do I choose? Out of loans, financing, cash, or insurance, which is best for me?”
It all depends on your personal preferences! Second mortgages, familiarity with the process, interest rates, or the amount of work you have to do are all factors to consider.
Using this list should help guide you to the path that is best for you.
Rescue My Roof wants to make the process of purchasing a new roof as painless as possible because you deserve to feel secure in the process.
Want to go an easier route and go through the financing Rescue My Roof offers? Contact us today to schedule an appointment for an estimate. In person, we will walk you through the financing process.