Most people do not enjoy hearing the phrase “creative with money.” It sounds a bit, well, dodgy. But when financing a new roof replacement, you can be creative with solutions which give you a fresh, water-resistant roof right away, without busting your budget.
A 2019 study indicated the typical American household had only $5,300 in savings. When your local, helpful roofer alerts you that a roof replacement is necessary, you must find innovative ways to pay for the needed roof. Here are five solutions for getting a new roof on your Central Florida home:
- Cash — Since $5,300 was a 2019 average, you may be at the high end of the range of savings and be able to afford to put cash out for the new roof; this is a wise use of the money if the alternative is a fat bank account and a badly leaking roof
- Credit card — Some Florida homeowners may enjoy credit limits on their bank cards which allow the total cost of a roof replacement to be put on plastic; be cautious regarding interest rates and terms
- Home equity line of credit (HELOC) — A HELOC is a revolving line of credit using your home as collateral; you take what you need as you need it for home improvements, maintenance, and other necessities
- Bank loan — Your local bank or credit union may offer personal loans which can give you the up-front cash needed to complete the roof; payment terms can be as long as 15 years
- Roofer loan — Most roofers have arrangements so clients can borrow through the roofing company, leveraging the business muscle to capture lower interest loans with lenient repayment terms
Who Knows This?
Almost nobody receives personal finance education in elementary or secondary school. Few, if any, college students take personal finance classes. Yet as Florida homeowners, we are expected to suddenly know all the ins and outs of financing homes, arranging loans, and handling our savings.
If you feel a bit out of your depth with your own finances, creatively arranging for roof replacement may be enormously challenging. But remember when your elementary school teacher told you, “There’s no such thing as a dumb question.” Ask experts for help. Ask your roofer, ask your banker, ask your credit union loan officer about options for financing a new roof. But do not delay getting the roof!
For example, these are questions to clear up immediately when discussing the roof replacement with your roofer:
- Should I wait to get a new roof until I have enough money to pay cash? A leaking roof cannot heal itself; your local residential roofing contractor wants you as a long-term customer and will work with you to find an affordable solution for protecting your home for the next two decades with a complete roof replacement
- Will insurance pay for my new roof? If you file a homeowners insurance claim and the adjuster determines a new roof is needed, insurance will cover the cost less your deductible; however, insurance does not pay for roof replacement due to normal wear and tear
- Is payment expected upfront? In most cases, only a small part of the estimated cost of the new roof is due at the beginning of the project, typically one-third of what appears in the printed estimate; an additional third is due when the roofing replacement work actually begins, and the final third is due when the job is finished and inspected
- Is a credit card charge better than a roofer’s loan? Roofers work with local finance companies to facilitate loans based on homeowners’ creditworthiness, so their loan products are not available to the general public; bank cards (unsecured debit cards) take into account all types of borrowers, including high-risk individuals, so bank cards charge very high-interest rates by comparison
- How do I get financing through my roofer? Call or contact your roofer early in the roof replacement process; ask about financing, and expect to be connected to the roofer’s financing services, which will walk you through the necessary steps
For roofers, a full roof replacement is a typical day on the job. For Florida homeowners, it is perhaps a once-in-a-lifetime worry. You are not expected to understand the financing or be familiar with roofing terminology. This is why the right roofer matters so very much; you must trust your local roofer to work in your best interest.
A deteriorating roof cannot wait for you to save enough money over several years to afford a replacement. Act quickly, working with your neighborhood roofer to protect your home. Creative financing arrangements can help. Delay can only hurt. Please connect with us today to find out more about roof replacement, options for financing a new roof, and all our quality roofing services available in the Central Florida area.