Replacing the roof on a home is one of the most expensive home repairs a homeowner can face. Depending on when you purchased your home and the roof’s state when you moved into it, you may have several years or only two or three before you will need to start pricing roof replacement. Even the best asphalt shingle roofs last only 20 years under normal conditions.
According to data from HomeAdvisor, the cost of replacing a roof in the United States is typically between $5,000 and $11,000, with an average cost of about $8,000. This is a sizeable expense, and many American homeowners do not have the financial flexibility to pay this cost entirely out of pocket.
Consider financing your roof replacement
Many Americans use financing for all types of high-dollar purchases, from expensive appliances to home repairs. Roofing is no exception, and the average homeowner likely has many more options for financing a roof replacement than they might realize. Government programs, home equity loans, and private financing are just a few examples of these options. Before committing to any solution, it’s essential to do thorough research to make a sound financial decision for your new roof.
The benefit of financing is that the average homeowner can handle making regular smaller payments over time instead of a large lump sum that might deplete their available savings in one motion. Any homeowner who needs a new roof should take a few steps before making any financial commitments they might later regret.
Gather quotes from reputable roofers
It’s wise to secure quotes for your roof replacement from at least three local roofers with solid credentials. If you notice a significant difference in the amounts quoted to you, investigate the reasons behind these differences. For example, one roofer may use a different material than another, and while more expensive, it would offer a higher quality end product. A high-quality warranty would increase the price as well, but with that you’ll have peace of mind knowing the company is standing by their product and will be available to fix it if something goes wrong. Be thorough when you review the quotes to determine the exact amount you must finance to complete your roof replacement.
Determine available financing options
Now that you have several quotes from local roofers and a solid estimate of what your roof replacement will ultimately cost you, the next step is analyzing your available financing options. Like any form of financing, it is generally best to choose the option that offers the lowest interest rate. This will ultimately lead to paying less for the work overall.
It is also vital to consider prepayment penalties. In some financing agreements, paying off the loan too early incurs penalties to offset the interest the lender would have otherwise earned from your loan. If you believe that you will be able to pay off your loan faster than the loan’s term, it’s worth choosing a financing option that does not entail any prepayment penalties. All our lenders have agreed to waive any pre-payment penalties.
Finally, it’s important to determine how soon you need the money for your roof replacement and how quickly you can secure the financing you need. A good roofer can tell you how soon you need to arrange your roof replacement to avoid further damage to your home, and this information should provide you with a clearer idea of what you are risking by waiting longer for your preferred type of financing.
Assess the benefits and drawbacks of all your available financing options
By this point, you should know how much your roof replacement should cost and what type of financing would work best for your situation. The next step is weighing your available financing options against this information:
- Your homeowners’ insurance policy may offer more financial flexibility than you realize. You may also have warranty coverage, depending on what type of damage your roof has sustained. It is always best to explore available insurance and warranty coverage before committing to any type of financing.
- The roofer you select to perform your replacement may offer financing plans through a third party. Review their financing options as you would any other loan. Able Roof offers financing through multiple sources. We understand this expense may be unexpected, and our payment plans help customers cover it without breaking the bank.
- Credit cards are a somewhat risky option, depending on how you prefer to pay your credit card bills. If you have a card with a high credit limit and low interest rate, this can be an acceptable form of financing as long as you pay well above the minimum monthly payment. Otherwise, you could end up spending thousands of dollars more for the replacement by the time you have the expense paid in full.
- A personal line of credit through a local bank or credit union can potentially offer better interest terms than a credit card if you qualify for this type of lending.
- Home equity lines of credit and home equity loans can be ideal for homeowners with bad credit or those who want to minimize interest with their financing. A home equity line of credit is generally more flexible than a home equity loan. The former allows steady repayment over time with more restrictions, and the latter offers a lump sum with fixed repayment terms but less interest. It also may help lower your taxes.
These are some of the most popular options available for roof replacement financing in the US, and there are some government programs available to qualified borrowers. If you are ready to replace the roof on your home and want a roofer you can trust, contact Able Roof today for more information about our financing options.