Roofing projects can take up a large chunk of your savings. The good news is you don’t have to shoulder 100% of the expenses in one go. There are several ways that you can finance a roofing job, whether partially or completely. And some of the options are conveniently being offered by many roofing contractors, while others are provided by third-party lending institutions.
At StormROOF Systems, we provide hassle-free financing to various customers. Whether you need it for an emergency roof repair or you simply want to improve your home and increase resale value, rest assured that we have you covered.
If you are still undecided which roof financing option to avail for your project, here are the essential factors that you need to consider:
In roof financing, term pertains to the length of time that your loan will last. A longer term will usually have you pay a higher interest over the course of the loan, but this will also likely allow for smaller monthly payments. If your goal is to repay the loan as quickly as possible, a shorter term with higher monthly payments would be a sensible choice.
Type of Debt
The specific type of debt that you will get could impact your finances for a certain period. Different kinds of debt usually have varying features, so you should carefully check the type of debt that you are getting.
For roof financing, you could be dealing with either a revolving debt or an installment debt.
A revolving debt is typically offered by credit card companies. It’s a quick and easy way to finance your roofing project since you can have access to funds as soon as you receive your card. It is also more flexible than standard loans, and as long as you haven’t hit your credit limit yet, you can continue charging your roofing expenses to the card. One of its cons, however, is that monthly fees are usually subject to change. If you’re not diligent in repaying the loan, you will likely find it difficult to keep up, especially since late payments could result in hefty fees.
Installment debt, on the other hand, is a type of loan repaid in monthly installments plus interest. Interest rates are typically determined by factors such as the amount issued, the duration of repayment, and the total number of payments. This debt is ideal for large purchases, and it is more structured than a revolving debt. Because the monthly payments are the same throughout the loan period, you can plan your finances accordingly and you’ll know when you will be out of debt. Take note, though, that there is no guarantee that you will qualify for advertised interest rates. Failure to make your monthly payments could also incur fees and ultimately impact your credit score.
Make sure that you are aware of the various fees that come with your desired roof financing option. Some of these fees can be easily avoided by following the terms of agreement, while others will be required regardless.
- Early repayment fee – Be careful if you are planning to pay off your loan before the end of the term because you might be charged a fee for doing so. That said, confirm the length of your repayment period and inquire if there is a fee for paying off the loan before the term ends.
- Origination fee – This is a required, one-time fee set by the lending institution for those who are taking out a loan. Some lenders do not charge origination fees. So to be sure, ask your lender if there are origination fees that you need to pay at the beginning of the transaction.
- Late payment fee – This can be issued when a monthly or annual payment on a loan is late. Some lenders allow a grace period, while others are OK with changing the monthly payment date. Don’t hesitate to ask your lender about such things or any special arrangements that you would like to be considered. If you are dealing with an emergency or storm damage repair, they might be more gracious in offering a grace period or designating a monthly payment date that is more convenient for you.
Another important thing to keep in mind with regards to fees is that they can add up. So make sure to check the different fees included in your loan before moving forward with it.
When comparing financing options, make sure to take the interest rates into account. Remember that loans require a payment for the borrowed amount plus interest that accrues over time. Interest rates are based on the original amount borrowed as well as other factors like your credit score, bank and financial profile. If you have a good credit score and stable sources of income, lenders will likely be more inclined to grant you lower interest rates.
Interest rates may also be based on the loan method that you have chosen. For example, the interest rate for small personal loans via a national bank would be different from the interest rate offered via credit unions. You can ask lenders to do a soft credit check so that they could quote you rates. This way, you can properly compare interest rates before choosing your lender.
Don’t forget to check the monthly payments. Ensure that your desired financing offers monthly payments that you can afford. Longer terms with lower monthly payments are usually more convenient because the monthly payments can be more easily fitted into a borrower’s current budget. Experiment with varying lengths of terms and monthly payments to find the setup that best suits your needs.
It doesn’t hurt to take a look at the extra benefits offered by lenders. Some lending companies throw in various benefits, which could make a difference and influence your decision on which financing to select. Some examples of these additional benefits include:
- Discount on the interest rate, which is sometimes offered to members of a local credit union or bank
- Discount for auto-pay sign-up
- Cash back or travel rewards, which are typically offered by credit cards and are attractive for borrowers who are only paying for a smaller project
Selecting the type of financing that you will use for your roofing project is definitely a major decision. Take your time in comparing your options, and make sure that you have all the above-mentioned factors considered. It is important to have a full understanding of the loan that you are getting because this could affect your financial freedom later on. Lastly, always go with a trusted contractor or lender. Ensure that you are dealing with a legitimate business and you are comfortable transacting with them. You’ll be in it for the long haul, especially if you choose a longer-term loan, so you might as well make sure that you are in good hands.
StormROOF Systems delivers quality workmanship for each job, whether large or small. Our team is experienced and trained in roof inspection, repair and replacement. We also offer roof financing options for various types of homeowners. You can get pre-approved in just 15 minutes and have the check within 24 hours. To learn more about our services, call us at (470) 300-1768 or fill out our contact form.