Can You Finance A New Roof

Other options for financing a new roof home equity loan.

Can you finance a new roof. A home equity loan allows you to borrow cash against the value of your home. Since a new roof can cost 15 000 or more depending on the size paying out of pocket is not an option for most homeowners. If you have equity built up in your home taking out a home equity loan can be a cost effective option to pay for a new roof. It is generally only used for large expenses like medical bills and necessary home improvements.

The biggest risk however is that if you default on your loan you could lose your house. Unlike direct lender financing financing may offer a lower interest rate to the customer. Roof financing with the right lender is a great choice if you need work done quickly or you want to add value to your home. The financing will depend on the value of your new roof and also your budget.

You work with a bank or financial institution and use your home s equity as collateral for the loan. Conversely if you don t have enough cash on hand which is common for such a large expense you ll want to look into other options. Different financing companies will work with various banks and may they also have varying new roof financing options that fit their customer needs. If you can t pay for a new roof in cash roof financing may be your best or only option.

You keep your existing mortgage and take out a new loan with a fixed interest rate that s generally lower than credit cards or personal loans. Your home s equity is its current value minus the amount you owe on your mortgage. Contact a licensed contractor to discuss roof replacement or repair options. If you have the money in an emergency account it may make sense to pay in cash and move on.

If you are organized and careful this is a solid option for financing a new roof.