Options to Finance Your Roof Replacement
Financing a roof can help you afford the roof replacement or repair you need to protect your home investment. At Kairos Roofing, we don’t want financing to stand in your way so we work with a financing partner to offer fair financing to all of our customers. We are a Ygrene roofing contractor, which gives you the opportunity to take advantage of a unique financing option. We know that both roof replacement costs and roof repair financing are big decisions and not ones that you should make lightly. Our team of experienced professionals can help walk you through the best options to help you make a decision that works best for your budget.
Types of Financing Options
Believe it or not, several roof replacement financing options are available to help you afford the roofing services you need. However, there are pros and cons to each style of financing, which is why it’s helpful to research each option before making your final decision. How do you pay for a new roof? Review the options outlined below to find out.
Financing a new roof is simple when you work directly with Kairos Roofing. We highly recommend you consider a Pace Ygrene Loan Program, which specializes in home improvement upgrades for South Florida residents. Ygrene financing helps you tap into the existing equity of your home to make changes that will improve your home’s energy efficiency and/or help protect the structure against South Florida’s unpredictable hurricanes.
The Ygrene Pace Program will evaluate the amount of available equity you can leverage toward your roof expenses. Pace Ygrene loans for roofs are a unique type of financing that is repaid with your property taxes. Since Ygrene loans are not based on your personal credit, this is a great choice for homeowners looking for new roof financing bad credit options. Some of the Ygrene financing features include:
- No repayment penalties.
- Low, fixed rates.
- No upfront costs.
If you’re curious about roof replacement with financing through Ygrene and want to learn more, call us at Kairos Roofing today for a pressure-free, complimentary consultation or apply directly through Ygrene.
A Traditional Home Equity Loan
When you need a new roof pay monthly, many options exist, including a home equity loan. A home equity loan for a new roof allows you to use the existing equity in your home to pay for improvements. To get started with this process, you’ll reach out to a lender, such as your bank or credit union. Next, the lender will take a look at your home’s value and your personal financial situation before offering you a lump-sum amount of money that’s backed by your home. Then, you’ll make payments on this home equity loan, just as you do your mortgage.
Additionally, a home equity line of credit works in the same way, except that instead of offering you a lump-sum, your lender will extend to you a line of credit that you can use as needed.
A loan for roof replacement or repairs may also be an option. Depending on your situation, you may qualify for a personal loan from your bank or credit union. In this case, your loan isn’t backed by your home like it is with a home equity loan. Because this is called an “unsecured loan,” your lender will want to review financial information, such as your credit and debt to income ratio, that prove you’re a safe, responsible borrower who will pay back the money.
If you shop around to different lenders for your roof replacement loan, you can get a competitive interest rate for a lump-sum loan to pay for your new roof. Keep in mind that your interest rate will vary depending on your credit score and other financial factors, such as the re-payment terms.
You may be able to use credit cards to help finance the cost of your roofing project. You’ll want to check with your credit card company to determine your card’s spending limits. Oftentimes, your credit card company will offer to increase your spending limits if your financial situation has changed (like if you recently received a raise or a new, higher-paying job). However, consider your card’s interest rate and any other fees before you decide to pay for your roofing project this way.
Financing new roof installations is not for everyone. Cash, on the other hand, is a no-strings-attached financing option for your new roof. When you pay with cash, you never have to worry about interest rates, monthly bills or late fees. Once you’ve paid for your roofing project, all you have to do is sit back and enjoy your new roof in comfort. Based on your circumstances, you may want to elect to use a combination of cash with other financing options to offset the interest charges from financing the entire roof replacement project.
How to Choose the Right Financing For Your Roof
The best way to finance a roof depends on your family’s unique circumstances. As you research how to finance a new roof, there are a few questions to consider before we get started. These include:
- Will your insurance company cover your roofing project? Grab a copy of your insurance policy review everything – including the fine print. Your insurance company may foot some – or all – of the bill for your roof project, especially if your roof was damaged or destroyed by a weather-related event or another incident that is covered under your policy. Since you already pay for home insurance, it’s in your best interest to investigate whether you can take advantage of your coverage for a new roof or for roof repairs.
- How much equity do you have in your home? A new roof payment plan might be available in the form of a home equity loan or home equity line of credit. Whether you’ve lived in your home for 20 years or you just purchased it recently, there’s a chance you’ve got some amount of equity built up. You can leverage this equity to your advantage through Ygrene financing options, a home equity loan or a home equity line of credit. Determining the value of your home’s equity is the first step in exploring these financing options.
- What do your cash reserves look like? Whether you’re a natural saver, or you recently came into a decent sum of money, you might have access to a healthy cash reserve. If you don’t want to take out a loan for a roof replacement, you can choose to use cash, instead.