When your existing roof is failing and it’s time for a new one, the ideal solution is to pay for it with money you’ve put away into savings for just such an occasion. But not everyone has the luxury of several thousand dollars sitting in the bank in case of emergencies. If you can’t pay for your new roof with money you already have, you’ll have to pay with borrowed money in some form. Here’s what you need to know about your options.
Home improvement loan
Technically speaking, any loan you use to pay for home improvements could be termed a home improvement loan but for the sake of this discussion, we’ll refer to home improvement loans as loans borrowed against the equity in your home to pay for improvements. Since this is a type of secure loan with your home’s equity as collateral, this will have the best interest rates and will be the cheapest way to borrow. Unfortunately, you also risk losing your home to the bank if you default on it.
Personal loans and credit cards
Personal loans and credit cards are usually unsecured debts and come with higher interest rates, especially credit cards. While personal loans usually have a lower rate, they require a good credit score and can end up being more expensive depending on how long it takes to repay it. Credit cards are the better option if you can pay the debt down fast but will end up being far more expensive than a personal loan if you get caught in a cycle of just making the minimum payment month after month.
Don’t pay for your new roof up front. Either pay at the end, or if installments are required, make sure you and the contractor are in agreement about how often and how much each installment payment will be.
A new roof is expensive, but putting it off when it’s needed is even more expensive so if you need a new roof but money is tight, contact a Spokane roofing company today to discuss payment options.
Home improvement news brought to you by bartonroof.com