A roof is a vital component of your home. It protects your property from external weather elements like rain, hail, sunshine, and wind, creating a warm and cozy environment. When your roof is significantly damaged, either through normal wear and tear or a natural disaster, a replacement should be your top priority.
So, how can you finance a full roof replacement if you don’t have adequate cash saved up?
1. Paying With Insurance
Your homeowner’s insurance can cover the cost of roof replacement if the roof is damaged through fire, theft, vandalism, natural disasters, and other perils outlined in your policy. However, your insurance will only reimburse your roof replacement cost if the roof was damaged by a covered risk and not natural wear and tear or lack of maintenance.
2. Home Equity Loan
With a home equity loan or line of credit, you can borrow against your home’s existing equity you’ve built up over time. It’s basically the difference between your home’s market value and the balance you owe on your mortgage. If your loan-to-value ratio is less than 85%, a home equity loan might be a suitable financing option.
3. Personal Loans
If you can qualify for a personal loan with a competitive interest rate, it can cover your roof replacement. Your lender will offer you a lump sum upfront which you can repay over a specified period. However, you can expect to pay higher interest rates for most personal loans.
4. Roofing Company Financing
Established roofing companies do offer financing options to cover roof replacement costs. In many cases, financing a roof replacement project with a roofing company can be a viable option, especially if you don’t have adequate home equity or when your credit rating doesn’t meet the threshold for mainstream lenders.
However, you need to ensure the required monthly payment is well within your budget. Financing through DWC Roofing in Central Indiana has major advantages. Due to volume lending through our partners, we are able to negotiate special rates and packages for our customers.
With our quick processing times and flexible repayment terms, you don’t have to be overwhelmed with financing your roof replacement. Our experienced roofing consultants will help you evaluate your total budget and craft a customized payment plan. Contact us today to learn about our company financing options.