It’s no secret that roofing projects, especially large jobs like roof replacements, can be expensive. Across the United States, the average cost of a new roof installation is $8,000, with the range sliding up to $11,000 or more for larger projects. In an ideal world, you’d have a plan in place well ahead of time to save up the money to pay for your new roof upfront, but real life doesn’t always work that way.
When a severe storm or unforeseen accident causes severe roof damage, you might find yourself in dire need of a roof over your head and lacking the funds to pay for it right away! That’s where roof financing comes in. From personal loans to home equity lines of credit, plenty of solutions can help you take care of business without spiraling into financial ruin. In this guide, we’ll look at some of the most common and effective roofing financing solutions and how they could benefit you and your home.
Why Should I Finance My Roofing Project?
While it would be nice to put off your next roofing project until you’ve had the time to save up, sometimes that’s not an option. Unexpected damage from storms or neglected repairs can leave you with expensive roof repairs or even in need of a complete roof replacement with little warning! Luckily, several roof financing options can break up one large lump sum into a series of monthly payments to help make the process easy and affordable.
Easier and Affordable Payment Options
Financing your roof repair or replacement is an excellent way to break the high upfront cost of a large job into easier and more affordable monthly payments. Depending on your credit score, borrowing history, and other financial factors, you could end up with an easily manageable minimum payment that helps you stay within your financial means and get critical work done to keep your roof in good shape year-round.
Ample Choice of Repayment Plans
There are countless financing options on the market today, which means that you have a near-endless amount of choices when it comes to repayment terms, borrowing periods, and other critical loan factors. This makes finding a repayment plan that works with your financial situation a breeze, so you can spend less time worrying about money and more time getting your roof back in shape!
What Kinds of Roof Financing Options Exist?
Once you’ve opted to finance your roofing project, the next step is to decide which of the many available financing options will work best for you. From fixed-rate loans that use your home’s equity as collateral to straightforward personal loans and more, the wide range of loan options makes it simple to find a solution that fits your financial needs.
Financing from Your Roofing Company
At PRQ Exteriors, we offer an industry-leading roof financing option for our services to help our customers meet their roofing needs on their budget. Our financing solutions stand out as a good option among other roofing companies because of our commitment to providing a clear and manageable repayment plan with no hidden clauses or tricky legalese.
Whether you value low monthly payments, a reliable interest rate, or a roofing service you can rely on, we design our financing plans from the ground up to meet your needs. Many other roofing companies also offer financing services, so check with your contractor to see what your options are.
Paying with Homeowners Insurance
Paying for your roofing project through insurance isn’t technically financing, though it can be the ideal solution for a costly repair, as long as the damage to your roof is something covered by your homeowners’ insurance policy. This is typically the first option you’d explore following severe roof damage and can produce the best financial result if everything goes as planned. However, if your insurance company denied your claim, a real financing plan may be your next best choice.
Home Equity Loans
A home equity loan can be a good option if your credit is in good standing and you’re looking for a lower interest rate through reliable lenders. Home equity loans are a type of secured loan where your own home is offered up as collateral. Once you’ve consulted with various lenders and chosen your offer, your loan is dispersed as a lump sum that you make payments on, similar to a mortgage. Home equity loans are usually fixed-rate loans, meaning your interest rate will stay steady throughout the repayment process.
Home Equity Line of Credit (HELOC)
A home equity line of credit works similarly to a normal home equity loan, but with one key difference. With a home equity loan, you request a lump sum of money upfront; how you spend it is up to you. A home equity line of credit functions more like a credit card: your lender sets a specific limit to the amount of money you can borrow, and you can take out as much or as little as you need. The collateral is still your home’s equity, but you have a little more freedom in the amount of money you borrow.
Personal Loans and Financing
Personal loans are great because, unlike specific roof financing plans or home equity loans, the money you borrow can be used for almost anything. The main thing to consider with personal loans is that your credit score has a much more significant impact on your interest rates and, ultimately, your monthly payments than it does for other loan options.
If you have good credit, your personal loan could have a lower interest rate than your average credit card – making it a good option if you’re interested in financial flexibility. If you have bad credit, however, lenders are more likely to stick you with higher interest rates which could cost you more in the long run. If you’re thinking about securing a personal loan for your roof replacement project, consider your credit score and overall financial situation to help you decide if it’s the right choice for you.
Home Improvement Loans
Home improvement loans are specific types of secured and unsecured loans designed to provide homeowners with the funds they need to renovate and restore their property. There are several varieties of this type of loan, including:
– FHA Title I loan (which is a fixed-rate loan designed to provide funds to improve a home’s basic livability and a good option for those who don’t have enough equity in their home to borrow against)
– FHA 203(k) loans (also for those with lower home equity or lower-income households in need of basic home repairs)
Each of these loans has strict stipulations, so do your research to determine if they match your situation and could be a good fit for your needs.
Paying via Credit Card
If all else fails, you can always finance your roofing project through your personal credit card. While credit cards offer much higher interest rates than most of the other options we’ve covered, there are a few situations where they could be useful. Firstly, if you have good credit, you can apply for and likely receive a new credit card with a promotional 0% interest rate for a fixed period. This can be a great way to limit the total amount of money you pay into your loan and keep your monthly payments low. Another benefit of paying via credit card is taking advantage of rewards programs or cash-back benefits. These benefits can help offset the higher interest rates typically associated with covering such a large purchase on your credit card.
Why Should I Work with PRQ for My Next Roofing Project?
When roofing disaster strikes, you need a proven and reliable roofing contractor you can trust to get the job done quickly, efficiently, and to the highest standards of quality. PRQ Exteriors has been serving Colorado since 2014, and our dedication to providing top-notch customer service and industry-leading residential and commercial roofing solutions has helped us stand apart from other roofing companies in the area.
Customer-Friendly Financing Plans
We’ve been a top-rated roofing contractor for nearly a decade, and in all that time, we’ve worked to keep our business and our services as green, sustainable, and eco-friendly as possible. Our goal is to provide our customers with a roof that is durable, reliable, and created in a way that makes the world a better place, one piece at a time.
Trusted Roofers in Colorado
We’re proud to have lived and worked throughout Colorado since 2014. We recognize the role we play in providing trustworthy and reliable services to our local communities, and we strive every day to go above and beyond for every one of our clients to ensure that their homes and businesses have a roof they can depend on all year long.
To discover how PRQ Exteriors can help you with your next home improvement project from start to finish, contact us today for a free consultation and complimentary estimate. We’ll work with you to identify your roofing needs and develop a plan to meet them head-on!