Can You Finance A New Roof

The way you pay for a new roof depends largely on your financial situation.

Can you finance a new roof.

If you have the money in an emergency account it may make sense to pay in cash and move on. It is generally only used for large expenses like medical bills and necessary home improvements. Financing by taking out a line of credit or a loan is how most homeowners pay for expensive repairs. Since a new roof can cost 15 000 or more depending on the size paying out of pocket is not an option for most homeowners.

Unlike direct lender financing financing may offer a lower interest rate to the customer. Your home s equity is its current value minus the amount you owe on your mortgage. Conversely if you don t have enough cash on hand which is common for such a large expense you ll want to look into other options. If you are organized and careful this is a solid option for financing a new roof.

You keep your existing mortgage and take out a new loan with a fixed interest rate that s generally lower than credit cards or personal loans. Contact a licensed contractor to discuss roof replacement or repair options. If you have equity built up in your home taking out a home equity loan can be a cost effective option to pay for a new roof. The financing will depend on the value of your new roof and also your budget.

The biggest risk however is that if you default on your loan you could lose your house. Roof financing with the right lender is a great choice if you need work done quickly or you want to add value to your home. Other options for financing a new roof home equity loan. A home equity line of credit heloc is a line of credit that uses an owner s home as collateral.

You work with a bank or financial institution and use your home s equity as collateral for the loan.