Replacing your roof can be a costly proposition. Fortunately, you do not have to pay for everything up front. With so many financing options available, you can conveniently buy a new roof on credit in order to keep your rainy day and emergency funds intact.
However, any residential and commercial roofing contractors will admit that choosing the right financing option is not always straightforward. Today, Texas Traditions Roofing talks about the key considerations you should keep in mind when borrowing some money to fund your project.
Length of Stay
Regardless of the reason behind your home improvement, any future plans to move should always be top of mind. If you intend to put your property on the market in a few years, you may want to consider applying for an unsecured loan.
Any financing options with no collateral requirement like a personal loan will not further tie you to your property. Secured loans (those with a collateral requirement) like a home equity line of credit, on the other hand, can reset the clock of your mortgage. Selling your house with little equity can affect your ability to negotiate for its price.
You do not need stellar credit to qualify for roof replacement financing. However, having a low FICO score may limit your options and inflate your overall cost of borrowing.
Annual Percentage Rate
Otherwise known as the APR, it represents the true cost of any loan. The interest rate may sound more familiar, but it does not take the other fees you may be charged into account.
Interest rates and fees are negotiable. You should have bargaining chips like good credit to talk a lender into agreeing to a more favorable deal, of course.
This refers to your repayment period. It matters because it dictates the number of installments of your loan, each of which is critical to make your repayment manageable.
Furthermore, it can also determine the total interest you have to pay your lender in exchange for fund your roof repair. Generally, longer loan terms require high interest rates.
Let Texas Traditions Roofing help you budget and finance your roofing project with ease. Call (512) 942-0427 to set up your appointment with us to learn about our financing options in Round Rock, TX.