Your roofing system is critical for ensuring energy efficiency and keeping your home safe and secure from the elements. When properly maintained the typical shingle roof has a useful life of 20 to 25 years. However, even with proper maintenance, it will eventually need replacement. 

Replacing your roof will cost thousands of dollars. The total cost depends on its size, pitch, accessibility, and cost of materials. Choosing the right financing plan is important when it comes time to invest in your new roof. 

We believe an educated consumer is our best customer. In this post, we’re going to look at three ways to finance your new roof, the benefits of each, what to consider before choosing a financing plan, and what we consider to be the best way to finance this investment in your home.

Options For Financing a Roof Replacement

When choosing the right financing option for your new roof consider several factors including the term of the financing and the interest rate. While it’s always best to pay cash for if you can afford it, a new roof often needs to be replaced when you least expect it. You may not have the savings to pay for it. Here are some alternatives to consider instead of waiting until you’ve saved cash.

3. Credit Cards

You might consider using a low-interest credit card to finance your new roof. If you can, avoid using it for any other purchases and set up a realistic payment plan (above the minimum payment) to cut your interest costs. One benefit, if you have a rewards card, is you can accrue travel miles or some other incentive for using your card.

Getting a new card expressly for your roof is a quick process. You may also be able to get a 0% APR introductory rate so if you can pay off your debt within the introductory period it is like paying cash. Make sure to read the fine print!

There are some drawbacks to using a credit card to consider. Interest rates are typically higher than other options. Additional fees or rate changes can sometimes occur. You also must pay back your debt faster to avoid high-interest charges. 

2. Home Equity Loan or Line of Credit (HELOC)

If you have equity built up in your home, arranging a home equity loan or line of credit can be a good option for financing home improvements. A HELOC typically has a much lower interest rate than a credit card. Secured by your home, it is viewed as less risky than an unsecured loan, such as a credit card. 

A HELOC is typically a longer-term loan, meaning you’ll have a lower payment. Some offer interest-only options so if you have an unexpected expense one month, you can pay just the interest due. HELOC or equity loans also offer tax advantages because it is a type of mortgage, so the interest you pay may be tax-deductible. Speak with your tax advisor to determine if these benefits apply.

While a HELOC offers you the lowest interest rate, it can take time to be approved so if you are on a tight timeline, it may not be the best option. You’ll also need equity in your home. Most programs require more than 20% equity and some HELOCs may have hidden fees so review your application carefully! Remember, your home’s equity can be used for other major expenses like college. 

1. The Best Way to Finance a New Roof

Working with us will give you a third option for financing your roof replacement, which we think is the best choice. Thanks to our connection with GreenSky Credit, we can offer our customers an alternative to offer all of the benefits of financing like fast approval, and low-interest rates, with a same as cash option.

GreenSky is a technology company that facilitates home improvement loans through member contractors. GreenSky offers fast credit approvals for homeowners with loan amounts up to $65,000. Loans come with a low-interest rate like a HELOC, and GreenSky offers a 12-month same as cash option. Simply pay the loan off within 12 months and you’ll pay no interest on the loan. 

If your loan amount is too large to pay back within 12 months, you can create a budget-friendly option to pay it back over a few years which is a much more affordable option than using a credit card, and your home equity remains untouched. GreenSky is a fast and inexpensive alternative to other options for financing home improvements like a roof replacement.If you live in central Kentucky and need a new roof, give the experts at AIC Roofing & Construction a call. Since 2003 we’ve been providing our customers with a better roofing experience consistently exceeding expectations!

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