Make no mistake, replacing the roof on your home is a huge financial investment. Roofing Contractors in Columbus Ohio are accustomed to working with homeowners to find the best roofing system without breaking the budget. Are you confused or worried about how to pay for a new roof replacement? We understand and we’re here to help! This simple guide can help you break down the basics of financing your new roof.
What Is Roof Financing?
Roof Financing gives homeowners options to pay for their roof replacement by borrowing the funds from a lender to pay the roofing contractor to install a new roof on your Central Ohio home. Homeowners can have their roof replaced to keep their home secure and dry, even upgrade to higher-grade shingles and choose an affordable monthly payment from their lender.
If you've financed the purchase of a car, home appliances or a home mortgage in the past, then many elements of financing a new roof installation in Columbus Ohio may sound familiar:
- Your principal is the amount of money you borrow.
- The APR includes your interest rate plus any fees the lender charged when you borrowed the money.
- There is a cost to borrow money, which is your interest rate. This is a percentage of the total amount you borrowed, which the lender charges as a monthly fee.
- The lender earns money through fees plus the interest you pay as part of your monthly payment.
- It is strongly recommended to carefully read the terms and details of your new roof loan to avoid unnecessary debt.
What Are the Different Types of Financing?
There are many ways to finance a roof repair or replacement, but some of the most common include:
Home Equity Line of Credit: Often referred to as a HELOC, this allows the lender to use your house as collateral against the money borrowed.
Personal loans: The structure of these loans varies by lender. Some have fixed interest rates, which stay the same throughout the course of the loan, while others offer variable interest rates. Lending industry professionals suggest shopping around between different banks and credit unions to find the best options—current interest rates for personal loans range from 3.97% to 36%. This range depends on factors such as your credit score or the length of the loan.
Contractor financing: Some contractors offer financing often through lenders they have partnered with. There are multiple perks to contractor financing, combining roofing contractor and quality lenders into one simple process can open up no-interest options, low-interest options, and lower monthly payments. Many Columbus roofers are able to offer 0% financing for up to 18 months without payments or interest! A reputable Roofing Contractor such as Best Exteriors, Inc. that offers financing as part of their value proposition clearly demonstrates to Columbus, Ohio homeowners they are professionals who should be trusted because of partnerships with lenders and roofing manufacturers.
How Much Will It Cost to Finance My New Roof?
The average cost of financing a new roof will vary depending on many factors such as how much you borrow, your APR and loan terms, and whether you miss any payments. Over time, missed payments may lead to penalty fees or higher APRs. At the end of your loan, you will have paid back the total amount you initially borrowed plus the total of all the interest and fees you paid throughout the loan. The better your credit score and credit history the more options you will have for the new roof replacement project.
As you consider financing a roof replacement project with your roofing contractor or financial institution, ask about options that reflect what you can reasonably pay each month. Every household is different and you should have options that reflect those differences presented to you. Many loans have no pre-pay payment penalties so that is something to factor in as well.
When you apply through your roofing contractor, the cost of the roofing project will factor into the application, and your financing will be approved for a certain amount. This simplifies things for you; however, if the job scope of work changes or you decide to add Velux Skylights or designer shingles, you may need to request a line review with the finance provider or pay for them in another way.
The size of your house, the roofing materials you select, the complexity of your roof project, and your geographic location all shape potential costs. When reaching out to roofing contractors in the Columbus Ohio area, ask about finance options to get reliable estimates.
When Is Financing a Worthwhile Option?
Financing your roof expands your roof replacement options and allows you to safeguard your cash on hand for other purposes. Financing can also help to increase the value of your home by allowing you to upgrade your roofing materials. Additionally, a "same as cash" financing option may allow you to pay off other higher loans you have, helping to reduce your overall debt.
Many people with plenty of cash on hand choose to finance. Financing allows you to decide when and how much you want to pay each month for your new roof. For those with a fixed monthly income or who prefer to keep an additional cushion in their bank accounts, a payment plan can be a simple way to help turn a roof repair into a home improvement.
What Are the Steps to Begin Financing?
The steps involved in financing a roof repair depend on your lender. This process can either be done with a trusted Columbus Roofing Contractor or through bank applications (personal loan or HELOC). If one chooses to go through a bank, the process can vary, but it typically involves completing some paperwork and submitting documents or other information. Approval may take 10 days or more.
Alternatively, contractors work in tandem with a financial lender to collect any necessary information on your behalf. By securely applying through an app and providing information such as your name, address, and Social Security number. In many cases, you'll receive your decision in minutes.
Because contractor financing is often approved faster than a personal loan through a bank, working with a trusted roofing contractor can streamline the process when a new roof installation or roof repair can't wait.
Concerned about your credit? Best Exteriors, Inc. has partnered with 3 different lenders to give our clients as many options as possible. We make every effort to be easy to work with and we welcome everyone regardless of credit history. If you’re a Central Ohio homeowner we would love to discuss options with you for a new roof installation.
Your trusted local, professional roofing and James Hardie Fiber Cement Installation contractor in Columbus Ohio is here to give your home the BEST!
Are you concerned about your roof getting through this winter? We don't take the responsibility of working on your home or business lightly, we invite you to trust Best Exteriors, Inc. for residential and commercial roofing & gutter services. Give us a call at (614) 964-BEST or toll free 1-844-865-BEST You can also fill out our contact form to schedule a free consultation!