Replacing your roof is one of the most significant investments you’ll make as a homeowner. It can also be one of the most expensive. If the idea of an upfront payment on this expense leaves you colder than an icicle on a gutter, there may be a better way.
You can protect your home by getting it the new roof it needs, even if you don’t have the funds to cover the whole replacement or prefer to hold on to your cash for other things. Roofing companies that offer financing can provide the best of both worlds: a new roof today while delaying some of the expense until tomorrow—or next year.
Why Finance Your Roof?
Roof replacement isn’t just about appearance or fixing a few leaks. It’s about safeguarding your home for years or decades. It’s also about lowering energy costs by increasing your home’s efficiency, protecting your house and belongings from the elements, keeping out pests, and preventing pest- or mold-related illness. In other words, the stakes are high.
You don’t want to delay this until you have more money saved. When your home needs a new roof, you don’t have time to wait until after you’ve paid off your Christmas bills or you receive your mid-year bonus at work. Waiting even a few more months to give yourself time to save up money can be catastrophic for your roof supports, energy bills, home, possessions, and even your health and safety. Unfortunately, your roof doesn’t care about your finances. It’s not going to wait until your account balance has recovered from the expense of car repairs or the hole in your account from a vacation.
You also don’t want to scrimp on quality. A lack of immediate funds doesn’t mean you should settle for an inferior roof. Cheap labor performed by inexperienced contractors may void your material warranty or cause more problems than they solve. Your finances also shouldn’t force you to opt for low-cost, low-quality materials that may soon require expensive repairs or fail more quickly.
With roofing contractors that finance, you are more likely to be able to get higher-quality materials that last longer, installed by a residential roofer you trust. That makes financing your roof replacement project a solid choice for your budget and peace of mind.
Questions to Ask Before Financing Your Roof
1. What’s the Interest Rate?
Interest rates vary widely. Your rate will depend on your credit, the amount you are financing, time frame, and current market rates. Make sure you understand your rate. You can also ask the roofing company to run several scenarios to see if they change your rate. Shortening the payback period or increasing your down payment may change the answer to this question about your interest rate.
2. How Much Will My Monthly Payment Be?
It’s critical that you understand your monthly payment. You want to make sure you can comfortably afford that amount for the duration of your loan. Your roofing contractor should be able to offer you several options so you can pick the terms that best suit your finances. Don’t be afraid to ask them to rerun the numbers based on different loan terms or even different roofing materials.
3. What’s the Total Cost of the Loan?
Interest payments add up. Looking at how much the loan will cost you, compared to the actual price of the roof project, can give you a better feel for the overall financial impact of this decision.
Be sure to use the project’s total cost in your calculations, such as any fees or expenses other than those for the roof and labor. Is there a financing fee they are rolling into the loan? How much does that cost as a line item, and when is it added to the loan amount and interest calculations?
4. Is There an Early Payment Penalty?
You may be financing this project because money is tight right now. In the future, you may get a raise, a bonus at work, or find other ways to make space in your budget. If that happens, you may want to make larger payments or even pay off the loan in full long before the end of your payment plan. Some roofers with in-house financing will penalize you for this. Look for a roofer that lets you change the terms of your loan by paying it off early without charging you a penalty.
If paying for roof replacement upfront feels like too much of a budget stretch, working with a residential roofing company that offers financing can be a fantastic option. You can protect and improve your home and potentially even increase your property value without putting a massive dent in your savings. Financing can get you the roof you want with the contractor you trust.
Don’t hesitate to ask questions of the roofing company representative helping you with the financing. Their job is to help you understand your options and find the loan that suits your situation. Ensure you know the complete financial picture and the details of your loan. Then, you can protect your home with a roof ready to weather whatever life throws at it, while also protecting your budget.