A roof replacement is one of the most costly investments in home maintenance. However, the alternative of leaving an old roof hanging on to protect a valuable home can be even worse. There are a few factors to consider when choosing a replacement roofing company and the payment method, but they usually boil down to how much cash you’re willing to spend upfront and how quickly a line of credit can be approved. If you have a tight budget, there are several ways to pay for a roof replacement, including financing. Here are some great ways to finance a roof.

PAYING WITH CASH OR CHECK

For most people, paying with cash in full is the simplest and most cost-effective solution. With no loans or credit ratings to worry about, all a homeowner has to do is settle on the price and call the roofing company making the best offer on the market.

The only thing to worry about when dealing with cash or check is to settle on the initial deposit to protect the contractor. There’s no further paperwork to complete, and the rest of the money is sent to the contractor once the new roof is complete.

However, not everyone has the spare funds on hand to settle such a high cost all at once. Roof repairs account for a large portion of the home renovation budget, so it’s no surprise some people look for payment alternatives to preserve their cash balance.

CREDIT CARDS OR LOANS

There are three main types of loans:

• Credit cards: While it’s not impossible to pay a new roof with a credit card, the terms for credit card loans are usually not in the cardholder’s favor. They charge exorbitant interest rates, and the roofing contractor needs to pay a fee for credit card transactions. These fees often reflect on the final price, meaning a buyer usually needs to pay more via credit card than other methods.
• Personal loans: Personal loans offer more favorable payment terms and variable interest rates. Paying off the roof over the next 6-15 years will put less of a dent in monthly budgeting but may mean losing money in the long-term.
• Home equity loans: Borrowing equity on the house can be attractive due to better interest rates. However, you’ll need a much better credit rating to apply for a home equity loan and only loan out 85% of the house not under a mortgage. The collateral for the equity loan is the house itself, so be very wary of missing payments.

DIRECT CONTRACTOR FINANCING

Some roofing companies offer direct financing through a third party. These transactions often have better terms and require less paperwork and mulling over credit ratings than getting a loan. A good roofing company can afford to finance roofs over the longer-term.

GOVERNMENT-FUNDED LOANS AND INSURANCE

If the roof damage occurs during a storm or from a fallen tree, first, look for an insurance claim for the roof. Then, determine how much of the repairs the insurance company will pay. Alternately, normal wear and tear are comparatively harder to get an insurance claim for, so you’ll be better off trying out other avenues.

CHOOSE HOW TO FINANCE YOUR NEW ROOF

Ultimately, the choice is yours. If there’s enough cash to cover the cost of the roof, it can be the simplest and most cost-effective option. However, if you don’t want to take out a large loan, contact a professional roofer that offers financing to discuss your options.

Roof X Inc. offers commercial and residential roofing for customers in Brandon, Saratoga, Tampa, and surrounding areas. We install and repair metal, tile, shingle, TPO, and more. Gutters, ventilation, and insulation are also available. Family-owned-and-operated Call us today at (844) 877-6639.