Roof Financing – Basic Terms & Options
Roof financing is a solution to all the fund problems for your new roof. The smooth application, low interest rates, and flexible payment options make it a wise choice to look up to today.
We have compiled a guide for you on roof financing, answering a few of the pivotal questions.
Finance For A Roof Project
Due to many unforeseen circumstances, like a natural calamity or even a storm, your roof might need reconstruction. It may also need reconstruction if it is old and is wearing off. It seems a small task, but many factors end up varying the cost of your roof project a lot.
Some such factors are:
1. Size And Complexity
If you have a large roof, reconstructing it will cost an enormous amount. Similarly, if the roof is made of a complex design or a pattern, remaking it will substantially require more funds.
2. Roof Shingles
Depending on the material they are made of, roof shingles vary in price. Some wear off quickly and need replacement, while some remain intact for long. You need to evaluate different options before you invest in the perfect covering or shingles for your roof.
The labor charged by every contractor differs project by project. Although the quality of work might be proportionate to the price they charge, it leads to more holes in your pocket.
The area you live in will impact the number of expenses for a roofing project. The services are readily available in the city area while it may cost you extra dollars in the countryside.
Basic Terms In Roof Financing
Some basic terms you need to know before borrowing any money are –
It is the period for which you take the loan. You need to repay at the end of this period. It is generally in terms of months or years.
2. Annual Percentage Rate
The annual percentage rate or APR is the interest rate the lender charges you rounded off for the year. It does not include the compounding impact and is used to compare offers.
3. Principle Amount
It is the total amount of the loan taken. It does not include the interest charged over the term.
Why Is Roof Financing A Better Option?
A roof provides shelter to you and your family and protects your home from the elements. Most of the time, we forget about repairing our roof until there are signs of serious damage. Thus, roof financing is beneficial.
You may not consistently save or have a special reserve ready for the roofing project. The bills amount to multi-thousand dollars that chiefly cannot be covered instantly. Roof financing facility helps you arrange this amount at the best possible terms and conditions.
Even when you are insured, the possible deductibles charged are large. If your roof is old enough, the deductibles will be even massive and for which you will require financing for sure.
The Owens Corning Roofing Contractor Network is a group of many such independent contractors. They provide you with the best possible roof financing options.
Some chief benefits that roof financing offers are –
1. Low Monthly Payments
You might not be able to repay the lump sum amount of the loan, generally in thousands, at once. Roof financing offers an easy monthly payments option that enables you to pay small amounts every month for a particular period till the loan gets cleared off.
The interest rate is decided based on your credit rating but is generally a fair amount.
2. Defer Payments
Deferring payment refers to delaying the repayment of the loan for a certain period without any interest or surcharge. The lender begins charging the interest after this set period expires. You can even pay back the loan before this period expires without paying any interest.
Defer payment loans are helpful when you urgently require roof financing but are short of funds. It also relieves you of some burden till the project is running.
3. Quick Approval
Owing to modern technology, you can easily apply for roof financing with a click. You can apply online via your mobile phones or laptops without any in-person dealing and paperwork. The approval also comes online and generally within minutes of submitting the relevant information.
Roof financing is like a long-term investment as it increases the value of your house. The 2019 Remodeling Impact Report stated that borrowers recovered 107% of the cost in the future due to higher sale value. Anyone would prefer buying a house with a new and safe roof.
5. Financing During COVID-19
In this pandemic situation, keeping safe options at hand is very necessary. Also, the online processing of the application ensures no physical contact, keeping you safe. It also eliminates all the delays possible due to the social distancing rules applicable.
Here are some common questions you may have in mind regarding roof financing.
1. How long should you finance for?
The length varies as per the lender though you need to consider various factors before borrowing. Short-term loans ensure less interest and a mental burden for a shorter period. At the same time, you have funds for a shorter period too.
Long-term loans mean funds at your disposal for a lengthy period and no rush to pay back. They also mean interest payments for the longer term and uncertainty of the future.
Reports show borrowers prefer taking a loan for 120 months of the term.
2. Do contractors offer payment options?
Yes, independent contractors at Owens Corning Roofing Contractor Network provide you with various flexible payment options.
3. Can insurance pay my expenses?
When the reconstruction takes place due to a natural accident, you can claim insurance coverage. In cases when the roof needs repairing due to wear and tear over time, insurers may not pay up to you. Roof financing remains a better option in this case. Further, it depends on your insurance contract.