How to Finance a New Roof

If you’re hoping to purchase a new roof, you’re looking at a big investment. While your new roof is likely to be durable for years and can help you save on future repair costs, the initial investment can be a bit overwhelming. 

Fortunately, there are plenty of roof financing options available for you to take advantage of. Most of them can be tailored to your specific financial needs and make the payment process less stressful. Below, we’ll discuss some tips and options to help you finance your new roof. 

Determine Your Budget

First things first — just like any other construction or renovation project, it’s a good idea to make a budget. For many homeowners, this sounds like a grueling process, but it’s always one worth doing. Taking the time to sit down and figure out what you’re willing to spend can help you stay disciplined about what products and accessories you buy. Otherwise, with so many roofing materials, styles, accessories, and warranties to choose from, it’ll be easy for you to get carried away and spend much more than you were expecting — making the financing process more difficult. 

6 Roof Financing Options

Once you’ve decided on a budget, you’re ready to find the financing plan that best suits your needs. Here are six options to consider:

1. Refinance Your Mortgage

When you refinance your mortgage, you replace your existing home loan with a new one. Through this process, it’s possible to get a lower interest rate or shorten your loan term, which can definitely be useful when you’re adding a large project cost in the mix. 

However, there are some things to keep in mind before you go through with refinancing. The process itself costs money, and the appraisal, title search, and application fee do as well. That being said, refinancing is only a good financial decision if interest rates are low enough to make the rest worth it.

2. Review Your Homeowners Insurance Policy

Are you installing a new roof because your old one was damaged by a storm or fire? You may qualify to get a large portion (or all) of your new roof cost covered by your homeowners insurance provider. Often, insurance providers will work directly with your roofing contractor to make the process simple.

3. Take Out a Personal Roofing Loan

One of the more straightforward financing options is taking out a personal roofing loan from your bank or credit union. This loan will come with a fixed upfront value and an interest rate based on your credit history. A good thing to know: personal loans often come with higher interest rates and shorter payback periods than other forms of financing, so it’s best to make sure you’re financially capable of managing it before you sign the contract.

4. Take Out a Home Equity Loan

A home equity loan involves you borrowing money from the available equity built up in your home. These loans usually allow you to borrow up to 85% of your home’s equity and pay it back over a long period of time — up to 20 years. However, they do come with harsh penalties for late payments, so it’s best to only take out as much as you need and be disciplined about making your payments on time. 

5. Start a Line of Credit

If you already have a good credit history, it might be a good idea for you to get another line of credit, possibly with a limited 0% interest rate period. The limited interest-free period for these cards is usually fairly short, lasting 1-2 years, but could still be a great option for paying your roofing cost without any interest piling up. 

6. Explore Your Roofer’s Financing Program

Last, but definitely not least — check with your roofing contractor to see if they offer their own financing program! Many do, and many have set it up in a way that streamlines the process for simple, stress-free payments.

At Standard Supply & Lumber, we’ve partnered with Mosaic to help with financing our customers’ home improvement projects. Mosaic offers financing options between $2,000 – $55,000 for projects of all sizes. They also have a range of competitive annual percentage rates (APRs), low monthly payments, and no prepayment penalties or swipe costs. 

Before you start spending lots of money on a new roof, make sure you’ve secured a financing plan that works best for you. At Standard Supply & Lumber, we’re happy to discuss some options with you, including our own financing plan with Mosaic. Give us a call or contact us online for more information.