How to Finance a New Roof Installation

Nothing lasts forever. Unfortunately for homeowners, this means it may be necessary to shell out thousands of dollars for a new roof at some point. For many, the daunting costs associated with new roof installation cause them to delay having this important home-improvement job done. The truth is, however, that their attempt to save money by putting the job off as long as possible may end up costing them far more in the long-run.

An older roof is more susceptible to permitting water leaks into the home. This can lead to costly damage to walls, flooring, and personal property. While insurance may cover some of these costs, homeowners must still pay the deductible and, depending on whether they have actual-value or replacement-cost coverage, their compensation for damages may be far less than they will need to spend to replace their water-damaged property.

It is therefore important that you are aware of the signs that it is time to replace your roof and that you have the job done in an expedient manner.

So, how do you cover the costs? You have a number of options.

  1. Personal savings: If you have money set aside for a rainy day, this might be a good time to use it. Just be certain that you work toward rebuilding your savings account so that the funds will be available again the next time you need them.
  2. Home equity loan: At the time of this writing, home equity loan rates are quite low, hovering at around 6% APY. So long as you have sufficient equity built in your home and no liens on your property, you can apply for this type of loan, which will typically have a fixed-rate with regular monthly payments. This is referred to as a term-loan.
  3. Home equity line-of-credit: Similar to a home equity loan, this credit is given to homeowners who have built sufficient equity in their homes  and have demonstrated the ability to make payments. Your credit is similar to that of a credit-card, meaning you are approved up to a certain amount and once you have paid down your debt, you can reuse that credit again. This is referred to as revolving credit.
  4. 12-month same-as-cash loan: This is one of the financing options offered by Baltic Home Improvements through our partnership with EnerBankUSA. If you choose this financing option, you can take a full year to pay off the cost of your home improvement job without incurring any interest. After one year, you will owe interest on your remaining balance.
  5. 5-year unsecured term-loan: This is another financing option offered by BHI. This is similar to the home equity loan, but, because it is unsecured, it will not put a lien on your property. Additionally, it is not necessary that you have sufficient equity built in your home in order to use it. Though interest rates are typically higher than with a traditional home-equity loan, BHI offers this financing option at a competitive rate.
  6. Credit Card: While this is a very high-interest way to go about financing your home improvement job, if you have the means to pay off the debt quickly and your credit card company is offering a worthwhile incentive, it may be a good option. Baltic Home Improvements accepts all major credit cards.

Learn more about your financing options and schedule an appointment for a free estimate today by contacting Baltic Home Improvements. We look forward to hearing from you.

Image Source: AlexanderStein