Is Financing a Roof Replacement the Right Decision?

Roof replacements are notoriously expensive home projects, which is why homeowners try to put it off for as long as possible. But once your roof is beyond repair, trying to delay replacement will only end up costing you more money in the long run.

Financing can help homeowners spread out the cost of roof replacement into a manageable payment plan so they don’t have to dip too steeply into their savings. Some companies, including Perkins Roofing in The Woodlands, partner with lenders to offer 12-month 0-percent financing, giving roofing customers a full year to pay off their roof replacement without incurring interest.

How You Can Secure Financing for Your Roof

Although you may be able to get a personal loan through your bank or credit union to finance a roof replacement, the easiest and most affordable approach is usually to work with a roofer that partners with specialized lenders to provide an easy financing solution for roof replacement.

The process itself is fairly straightforward:

1. Assess your financial situation. Even if you can afford the cost of total roof replacement without financial strain, you might still want to consider financing in order to keep more of your assets liquid and protect your family’s financial safety net – especially if your financing options include a 0-percent grace period.
2. Contact a trusted local roofer that offers exceptional financing options for their roof replacement services and lock in a price.
3. Get pre-qualified from a lender.
4. Have your roof replacement performed and pay it off over time – often for a competitive low rate.

Pros and Cons of Financing Your Roof

Financing gives you immediate access to funds through flexible payment options that allow homeowners to keep their savings intact. It makes it easier for homeowners to replace their roof, which will increase their property’s curb appeal and value. There are also situations where a homeowner may want to save their liquid capital for other home improvements or purchases, like a new car or kitchen remodel. Financing gives you more options.

However, accruing interest will inevitably mean your roof replacement will cost more in the long run than it would have if you paid cash. Missing a payment can negatively affect your credit score and have other repercussions for your finances.

Ways You Can Finance Your Roof

Personal Loan

Personal loans provide quick funding, fixed interest rates and are generally considered a lower risk investment, but their interest rates tend to be higher than other financing options.

Home Equity

If you have significant equity in your home, a home equity loan or line of credit (HELOC) might offer lower interest rates and a longer repayment period. However, home equity loans are considered more dangerous than personal loans, as defaulting on payments could put your home at risk.

Mortgage Refinancing

Mortgage refinancing (also known as a cash-out refinance) allows homeowners to refinance their existing mortgage for a larger amount than they currently owe. The difference is paid out in cash, which homeowners can use to pay for a new roof.

Mortgage refinancing may be tax-deductible and can potentially lead to lower interest rates, but the closing costs will be higher, and the approval process will take longer. Moreover, you also need at least 20 percent home equity to qualify.

Insurance Claim

Filing a successful insurance claim is often the preferred path to paying for roof replacement or repair, but insurance will not cover normal wear-and-tear due to age. Even if a roof damage claim is successful, it may only cover part of your roof replacement costs, meaning you might still need to finance some of the roof replacement or pay out of your own pocket.

A homeowners insurance claim could save you thousands of dollars and prevent you from needing to apply for financing – but the downside is that your insurance premiums may increase.

Roofing Company Financing

Some roofing contractors offer financing plans for replacement services, though some shoddy companies can surge their interest rates to pad their bottom lines. At Perkins Roofing, we put your needs first. We partner with EnerBank to provide homeowners with flexible loan term payments, ranging from a one-year loan term with 0 percent interest (same as cash) to a seven-year term with 7.99 percent APR.

Homeowners don’t have to worry about application or appraisal fees, prepayment penalties or collateral requirements that put their home ownership in jeopardy. Our financing partner will work hard to help you secure the loan you need with a quick turnaround for your peace of mind.

Receive Customer-Centered Service for Your Roof Replacement That Puts You First at Every Step, From Financing to Installation

Perkins Roofing is a local, family-owned company that’s been making roof replacement hassle-free for homeowners in The Woodlands for years. Learn more about our financing or schedule a free roof inspection with a dedicated roofing professional today by calling (832) 702-0201.