A roof replacement can be a significant expense. On top of the estimated cost of your project, you should prepare an extra 20% to serve as a buffer against change orders.
Considering that running out of funds can stall the construction, knowing all of your financing options matters to keep your project on schedule. JTI Roofing talks about the pros and cons of each below.
Paying everything out of pocket is the best. You can start your asphalt-shingle or metal roofing project soonest, for you will not be at the mercy of a financial institution. Also, tapping your cash reserve saves you money because there is no interest involved.
JTI Roofing recommends this option only when you have thousands of dollars lying around and when you do not have to touch your emergency fund. If your savings will not be equivalent to three to six months’ worth of your living expenses after the project, strongly consider loaning money.
Paying with plastic comes with many benefits. It is convenient, may offer payment flexibility and can earn you rewards. If you use an unsecured credit card, you do not need collateral to access funds instantly.
However, most roofers agree that credit cards may be useful only for smaller projects like roof coating application. When buying a new roof, you may need to borrow beyond your credit limit.
Usually, you can use a personal loan for any purpose, including a roof purchase. The downside is that you may pay for an exorbitant interest rate if you have bad credit.
Home Equity Loan
Most residential and commercial roofing contractors can attest that borrowing against your home equity can unlock a ton of cash for your project. The interest rate attached to this type of loan is fixed, so your monthly payment remains the same.
Much like a cash-out refinance, a home equity loan may endanger your mortgage if land values in your area decline. Be careful about using it as collateral to avoid losing your house to foreclosure in the event of a housing crisis.
Let JTI Roofing help you determine the most suitable roof financing option for your situation. Call us at (407) 901-3600 to discuss your roofing project and get a free estimate.