Financing a new roof can in many cases help out a homeowner’s budget. A roof is a significant and, in many cases, crucial investment. It doesn’t matter if you need a new roof because of weather-related damage like hail or windstorms, or it is a planned project, a well-installed and durable roofing system is essential to keep your family and home protected from severe weather.
How to Finance Your Upcoming Roofing or Improvement Project?
The price of your new residential roofing system can vary greatly depending on many factors, such as:
- The size, shape, and complexity of your roof
- The type and quality of your roof materials
- The roofing contractor you hire for the roof replacement. Different contractors offer different labor rates.
- Your location and local climate
Due to these unique factors, it can be difficult to accurately determine the cost of your roofing project. This is where available roof financing options can help you.
Financing a New Roof: How Does Roof Financing Works?
Let’s look at a few important words that are widely used in the roof financing market. After that, we will delve into the reasons why homeowners might prefer to use roof financing on a new roofing project.
- Term: It means the amount of time for which you take the loan or the total time you need to pay back the loan.
- Principal: It refers to the total amount of loan money you borrow at the beginning from the lending company.
- Annual Percentage Rate (APR): APR or annual percentage rate is the money a lender charges you annually for the loan. It doesn’t include the compound interest. Knowing a loan’s APR comes in handy when comparing various loan products available on the market.
- Interest: it is the amount of money you must pay over and above your principal loan amount.
Financing a New Roof: Top Reasons to Consider Roof Financing
Most homeowners pay little attention to their old roof until they have a leak or see shingles missing. As a result, it’s easy to put off necessary roof repairs or replacements until it becomes too late and another damage like rot has occurred. Sometimes, extreme weather or a natural disaster can wreak havoc on your roof and cause irreparable damage.
If you can afford roof repair or maintenance, that’s good. But, in many cases, homeowners are not prepared to address emergency roof repairs or replacements immediately. Even if your insurance provides sufficient coverage for the roofing damage, you may have to pay large deductibles that may not have been budgeted for. At other times, you may want to go for total roof replacement with improved and advanced materials rather than performing a roof repair.
Financing a New Roof: Reasons to use financing
Low Monthly Payments
When you choose a roofing contractor certified by trusted manufacturers like Owens Corning Roofing Contractor Network, you can take advantage of their low monthly payments. This will allow you to pay for your new roofing system in small monthly installments that you can easily afford. Based on your credit history and payment terms, you may qualify for very low interest rates for your loan amount.
Defer Your Payment with No Interest
If you can’t afford the lump sum payment upfront and do not want to pay any interest, you can consider loans with no prepayment penalties and 0% financing up-front. In many installment loans, you don’t have to pay any payment or interest for the first six months. In this, you can pay back the entire loan with no interest within six months. Or you can opt for monthly payments at a new interest rate.
Delay Your Payments for a Set Period
In many roof finance loans, there’s a provision where you don’t have to make any payment for a set period. After the completion of this period, you can start making monthly payments at a fixed interest rate. This can be particularly beneficial for homeowners who have a tight budget right now but want to start their roofing project immediately for some reason.
Quick & Easy Approval
Today’s technology has made it easier for homeowners to apply for loans from the comforts of their homes. All you need is a mobile App, like the Service Finance App and you can apply for any type of home improvement loan online, even without any complicated paperwork. The approval process doesn’t take more than a few minutes after the submission of your information.
Roof Financing in Times of Pandemic
Due to the economic crisis resulted from the Coronavirus pandemic, it is important to have multiple options at your disposal to deal with important, and often expensive, home improvement projects like a roof replacement. Roof financing enables you to protect your investment and get a solid and high-performance roof for optimum protection for your family. With roof financing, you can achieve all this without having to make an investment upfront.
Enjoy a High Return on Investment
As per the National Association of the Remodeling Industry report, a new roof can significantly increase the value of a home — homeowners can reap up to 107% return on investment when they sell their homes with a new roof. They also found that a new roof can help you sell your home faster and fetch a higher price than you can expect.
Frequently Asked Questions:
How Long a Roof Should Be Financed?
Your loan terms can vary depending on your lender. In general, the shorter the loan term, the lesser the interest you must pay. However, with longer loan terms, your monthly payments will be lower and affordable. While longer loan terms require more interest, most homeowners opt for 120 months or longer term to ensure that the monthly payments will have minimal impact on their bank balance.
Are There Any Payment Plans available?
Of course, we offer several attractive payment plans. Lenox Roofing’s main goal is to make your roof replacement project as affordable and hassle-free as possible. Payment options may vary according to interest rates, terms, and your exact requirements.
Can My Homeowners Insurance Cover My Roof Replacement?
It depends on the type of your insurance policy and why you want to replace your existing roof. If it is due to some weather-related damage, then your homeowner’s insurance might cover it. On the other hand, if you need a new roof just because of some age-related damage or to increase the resale value of your home, your homeowner’s insurance might not help you with the cost.
Opting for roof financing will help you achieve all these goals — you can increase the value of your home for years to come, permanently fix your existing roofing issues, and get a stunning and durable roof without breaking a bank. To learn more, get in touch with our Lenox Roofing Solutions experts today. Call 843-380-6205 for roof financing options anywhere in the Myrtle Beach SC area.