Tips to Get a Bargain on Roof Replacement Financing
Replacing the roof of your house may become a necessity if the roof develops weaknesses, especially the under frame. Even if the under frame is okay, you may need to replace the shingles with new ones. Either way it is an expensive proposition. You need to build up a fund over the years or go for roof replacement financing. Though savings from your own fund is always the best option, there are a number of lucrative roof financing options too. Let’s have a look at them.
You are eligible for Federal Housing Administration Title I loans if you have limited home equity and good credit. You can use the fund for home improvement jobs including roof replacement financing to make your home more habitable. You can get the loan from banks and other lenders, and get it insured by FHA against a loss, if any. You can even get a new roof through this program. You are welcome with a bouquet of incentives if you plan to finance a new energy efficient roof. You can get incentives from local, state, and federal authorities for installation of energy efficient roofing system. You may also become eligible for tax credits from the Department of Energy for such energy efficient roofing.
No Interest Credit Card
A 0% credit card can be a godsend for roof financing, albeit if you can procure one. If you have good credit score you can procure a Zero interest credit card and pay for roof financing. You have the option of repaying the borrowed amount for a year without any interest. Break up the total cost in 12 monthly installments and repay the loan for a year.
Home Equity Line Of Credit
HELOC, as it is known as, is a credit facility which you can use for your Roof Replacement Financing. You need to use your home as collateral for this line of credit. Though people take recourse to such credit options to meet unexpected and large expenses such as medical bills, you can also use it for roof replacement and home improvement expenses. You can repay the amount over a long time.
Home Equity Loan
If you have considerable home equity on your house, you may become eligible for a home equity loan. You can finance your roof replacement program with this loan and repay it over a number of years with low EMIs. You can choose either a fixed interest rate or a variable interest rate. You can go for a variable rate if you are hopeful of a rate cut. However, the rate usually does not increase more than 2% annually. Moreover, you can get tax deduction for the amount of interest payable by you. However, to build up a considerable home equity you need to pay your home loan interest religiously over a considerable period of time. It can also work if the market price of your property has increased considerably ever since securing the loan.
Cash Out Refinance
If you opt for a cash-out refinance you can replace your mortgage loan with another which would pay off the balance of mortgage and use the equity you have earned so far to offer you additional funds for roof replacement or other home improvement jobs. You can go for this option if interest rates have dropped recently or you are interested in live in this house for a long time to come. However, while opting for such loan you need to consider things like — for how many years you need to pay for the existing loan, term of the new loan, and whether the interest rate of the new loan is lower than the same of the existing loan.
In absence of other options for Roof Replacement Financing you may need to go for a personal loan. You can secure a personal loan very fast. In fact, you can get it as early as the next business day. However, the interest rate of personal loan is higher compared to many other types of loan. However, you can get something called relationship discount to lower the interest rate, albeit if you qualify for it. To get a relationship discount you need to maintain an account, preferably a salary account with the bank. You may also qualify for such discount if you use a credit card issued by the same bank.
About the Author
The author is a distinguished creative writer and professional editor. This article is about roof replacement finance services.
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