Having your roof replaced is no small expense. Throw in the fact that there could be underlaying issues that are unforeseen when you get your original bid. A roof that has leaking issues or is really old will most likely require some extra work when being replaced which increases the cost.
CASH IS KING. Cash is obviously the best option when paying for any repair. However, there are other financing options if you do not have enough cash to cover the expense.
1. Personal Loan– You can always go to the local bank and take out a personal loan specifically for home improvements. These rates are typically lower and are dependent on how long you want to take to pay it back and credit checks.
2. Credit Card– There is always a credit card option. Most people have a credit card already so there is no application (unless you are wanting a new credit card). However, with extremely high interest rates in comparison to your other options, this may not be the wisest financial option.
3. Home Equity Loan– Don’t want to take out a loan or use your credit card? Use what equity you have in your home and borrow against that. It is commonly called a second mortgage as it is processed just as a mortgage is. It has a fixed monthly payment and all the fees that are included a closing. You get a lump sum of cash up front and can go from there remodeling or fixing up your home.
4. Home Equity Line of Credit– The best way to describe this is as an interest only credit card. For a time being you only have to pay the monthly interest on whatever you have spent. Once that time has passed you then have to pay the balance just as you do a credit card. However, the interest rates may differ throughout the duration of the loan, which can make them a bit tricky.
Now, if you have the cash, use the cash! However, sometimes “when it rains it pours” and if you have a leaky roof, it needs to get fixed- NOW. If you need more information about the different types of financing each bolded point is a link.