Is It Time To Finance a New Home Roof?

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Is It Time To Finance a New Home Roof?

Replacing the roof on your Austin home is an expense that can take a big bite out of your budget. If you’ve been advised by your roofing contractor that it needs replacement soon, it’s time to consider your financing options. Here are some situations where roof financing makes good sense:

You Plan to Sell Your Home in the Near Future

According to the 2015 Remodeling Impact Report from the National Association of Realtors (NAR) and the National Association of the Remodeling Industry (NARI), a new roof nets about 105 percent of its cost when a home sells. That extra 5 percent in value can help defray the cost of borrowing, plus a new roof makes your home more attractive to buyers.

Your Insurance Company is Threatening a Premium Hike

If your insurer has noted the condition of your roof during a recent inspection, they may demand that it’s replaced or they’ll charge you substantially higher premiums or even cancel your policy. On the flip side, some insurance companies offer a discount after a roof replacement because it gives the structure, interior, and contents better protection. Either way, any insurance savings can help offset the interest charges you’ll pay if you finance.

Your Roof Has Reached the End of Its Useful Lifespan

If you’re repairing leaks repeatedly, your shingles are bare of granules in many places, and they’re curling or buckled, it makes more sense to borrow to replace the roof than keep sinking money into short-term fixes.

You Have Home Equity That You Can Leverage

If you have value built up in your home, you can apply for a home equity line of credit to pay for a new roof. With a line of credit, you can borrow just the amount you need, and it offers flexible terms so you can make interest-only payments when money is tight, and make higher payments whenever you have extra wiggle room in your budget.

You Don’t Want to Drain Your Savings

Financing a new roof may be a good option even if you have money saved up that can cover most or all of the cost. If you borrow instead, you can keep your emergency fund intact, or you can use your savings for other home improvements, a planned purchase, a vacation, or an investment.

For advice about whether roof financing is ideal for your particular needs, contact us today at Quality Roofing.

Read: How to Choose a Roofing Contractor