A roof replacement is a big expense that can drain your household emergency fund, or leave you in a financial quandary. Unless you’re replacing a badly storm-damaged roof that’s fully covered by your homeowner’s insurance, you may need to finance a portion or all of the cost. There are a number of different ways to finance your roof replacement, and it’s good to compare and weigh the various options carefully so you can choose the one that best suits your particular needs. Here are some financing alternatives you might consider:
FHA-Backed Mortgages and Loans
If you’re already planning to refinance your existing home loan, a 203(k) refinance/renovation mortgage through the Federal Housing Administration (FHA) may be a good option. If you don’t have a mortgage or don’t want to refinance right now, there are also FHA-insured “Title 1” loans available for home improvements. This type of loan allows you to borrow a maximum of $25,000 for up to 20 years.
Home Equity Line of Credit
A variety of banks and other lenders offer HELOC lines of credit based on your home equity. Somewhat similar to a credit card, a home equity credit line is approved for a set maximum, at either a variable or fixed interest rate. Once you have a HELOC in place, you can borrow funds as needed up to the maximum. And, as you repay the balance, that amount of credit becomes available again.
Introductory Periods on New Credit Cards
A new credit card with a lengthy low or interest-free introductory period can be a viable solution for financing a portion of the cost of your roof replacement. To avoid paying a sky-high interest rate, just make sure you can budget for monthly payments that will zero out the card balance by the time the introductory period ends.
Roof Replacement Term Loans
At Echols Roofing, we’ve partnered with FDIC-insured EnerBankUSA® to provide our customers with term loan options to finance a roof replacement or other home improvements. EnerBankUSA®’s unsecured financing alternatives include a 12-month “same as cash” loan that’s interest-free if you pay off the balance within a year, and a five-year loan at an affordable 6.99 fixed APR if you prefer to work monthly payments into your household budget over a longer term.
To learn more about the available options to finance a roof replacement for your Atlanta-area home, contact us at Echols Roofing today!