t's easy to forget about your roof, and homeowners often put off repairing or replacing an aging roof until serious warning signs appear. Other times, Mother Nature may wreak havoc with your shingles or send a wayward tree branch that causes damage.
If you've built up a fund for roof maintenance and repair, that's great, but many times we're left unprepared when roof needs come calling. Even if the damage is covered by your insurance, you may be left with a hefty deductible that's not in your budget. Or, you may decide it's time to replace the entire roof with new and improved materials rather than do a repair.
Many independent roofing contractors within the Owens Corning Roofing Contractor Network offer financing options for customers.
Here are some reasons to consider roofing financing for your roof repair or roof replacement project.Repair Your Roof
Whether your new roof is the result of a planned project or because of unexpected circumstances, it can represent a significant, but necessary, home investment. After all, a roof helps to keep your home and family protected from the elements.
The cost of a new roof varies widely because it depends on several factors, including:
- The size and complexity of the roof
- The type of roof shingles used
- The roofing contractor hired to do the job, as labor rates vary among pros
- Your geographical area
- These variables can make it difficult to save for a roofing project accurately, and that's where roof financing can help.
Before diving into the reasons homeowners choose to finance their roofing project, let's cover a few basic words often thrown around by lenders:
- Term refers to the length of time you have to repay the loan. It's usually expressed in months or years.
- APR (annual percentage rate) determines how much the lending company is charging you for the loan of the money. It may or may not include fees, and it doesn't include the compounding effect of interest - most interest compounds monthly. APR is a useful tool for comparing loan products.
- Principal represents the total amount of money borrowed at the onset of the loan.
- Interest is the cost of your loan over and above the principal amount.
When you finance a new roof you can benefit from low monthly payments. This lets you pay for your roof in installment amounts you can afford and prevents you from having to pay for a multi-thousand-dollar roof project in one lump sum.
Depending on your payment terms and credit history, you may also be able to benefit from low-interest rates during the life of the loan.
For example, an unsecured home improvement loan of $10,000 for 120 months results in a low monthly payment of $132 with a 9.99% APR*.
Some loans let you put off making payments for a set period. Once the time is up, you'll begin making regular payments at the fixed interest rate. This is especially helpful for situations where you're short on cash but need to get started on the roofing project without delay for safety concerns or other reasons.
Applying for roof financing can be an easy, seamless process thanks to modern technology. You can apply for roof financing online, via a mobile app, or call in, completely eliminating paperwork. You will need to provide an electronic signature. Once you submit your information, approval notices usually arrive within minutes.
According to a 2019 Remodeling Impact Report from the National Association of the Remodeling Industry (NARI), the impact of installing a new roof can be significant - homeowners may be able to recover 107% of the cost after installation when they go to sell their home.
In this same report, it was found that new roofing ranked high on home buyers' lists, which means that if you're thinking of selling your home in the future, a new roof might help you do it faster and fetch a larger price.
When you choose roofing financing, you get the best of both worlds - you can invest in your home for the future, address existing roof problems and get the roof of your dreams at a price you can afford.
Find out more information about roof financing from an independent roofing contractor in the Owens Corning Roofing Contractor Network near you.
Loan terms are going to vary by lender. Shorter loan terms mean you pay off the debt sooner, and likely pay less interest, but longer loan terms ensure your monthly payment is lower and more affordable.
While you might pay slightly more interest over the long run, many homeowners choose a 120-month term or longer to ensure payments remain within their budget.
Yes. Some of the independent roofing contractors in the Owens Corning Roofing Contractor Network offer payment plans to help make roof replacement costs more affordable.
Payment plans vary according to requirements, interest rates and terms, so it's important to ask the roofing contractor you have in mind for more details.
It depends on your policy and the circumstances surrounding why you need a new roof. If it's because of a weather-related event, then homeowner's insurance coverage might apply. But if you're just looking to replace it because of age or to up its resale value, homeowner's insurance likely wouldn't assist with the cost.