Destin Roofing: Article About Financing A New Roof
The best way to pay for a new roof is with cash carefully saved up over the years in preparation for a replacement. Unfortunately, many homeowners don't have a lot of extra money to set aside, and when the time comes for a new roof from a Destin roofing company, they have to consider alternative options. Financing the cost of a new roof is relatively simple, especially for those with good credit, but it's always important to pay attention to interest rates and the term of the loan. The longer the term of the loan and the higher the interest rate, the more the consumer pays.
Those who have plenty of equity in the home can often turn to the bank for a home equity loan or a home equity line of credit. The difference between the two is that the loan is for a specific amount, and the line of credit allows the homeowner to borrow up to a specified amount. In the case of a new roof installation, it's usually better to go with the line of credit. The amount of credit the bank offers depends on the amount of equity the homeowner has in the home and how much the home is currently worth.
The roofing experts at Art Construction of Destin FL can assist you with any questions regarding insulation or doors.
For example, if the homeowner has paid off $100,000 on a $200,000 home, he has $100,000 in equity in the home, and the bank might let him borrow up to $80,000. Low interest rates are one of the biggest advantages to HELOC loans.
Those who don't have a lot of equity in the home may need to turn to the Federal Housing Administration's Title 1 Property Improvement Loan Program. In this case, the homeowner will be able to take out a loan from the bank, and the FHA will back the loan. These loans can only be provided to the owner of the property, and the owner will have to qualify based on the bank's general loan approval standards.
Due to their high interest rates, credit cards are often a poor choice for financing a roof project. However, when the consumer has enough available credit and the credit card company is offering a zero percent incentive rate, charging it can be a great way to get a short term interest free loan. If going this route, look at the length of the zero percent rate and attempt to pay the full amount within that time frame. Otherwise, interest rates can jump to over 20 percent.
Ultimately, any homeowner who needs to finance a new roof needs to carefully consider the options. Looking for the method that comes with the lowest interest rate and trying to pay it off as quickly as possible is usually the best option.