3 Options For Paying For A New Roof For Your Home

Your roof plays a huge role in keeping your home safe from the elements, but you still probably are not looking forward to replacing it. A new roof is expensive-- in most cases you can expect to spend several thousand dollars to have a new roof placed on your home. Most people don't have thousands of dollars sitting around, so knowing that you need a new roof can be quite stressful. Luckily, there is no rule that you have to empty your bank account and pay for a new roof with your hard-earned money. There are several options that can make it easier for a homeowner to replace a roof if he or she can't pay for it outright. Some common ways to pay for a new roof include:

Contact Your Homeowners Insurance Company

If your roof has sustained a lot of damage due to a hail storm, severe thunderstorm, or high winds, have it inspected by a roofing contractor and then contact your homeowners insurance company. Depending on how severe the damage to your roof is, your insurance company may agree to pay for a roof replacement or cover a good portion of the cost of a new roof. Since this can save you a lot of money, it is always worth your time to make the call and ask-- the worst thing you can be told is no.

Home Equity Loan

If you have lived in your home for years, you most likely have a good amount of equity in your home. In this situation, you can borrow against the equity in your home to pay for a new roof. All you have to do is apply for a home equity loan. Securing a home equity loan is relatively straightforward, and usually requires submitting an application and required paperwork and then having your home appraised. If you are approved for a home equity loan, you will receive the funds that you need in a short period of time. With a home equity loan your house is usually the collateral on the loan, so make sure that you stay on top of your loan payments in order to prevent any problems.

Payment Plans

Residential roofing companies know that a new roof is a very big expense that a lot of homeowners can't afford to pay in one large lump sum. This is why many roofing companies offer payment plans and a variety of financing options. These kinds of arrangements can give you months or even years to pay off the cost of your new roof. In many cases, payment plans and financing do include interest, so you will want to pay off what you owe in a timely manner in order to prevent too much interest from accruing.