Replacing Your Roof: Financial Options for Protecting the Most Important Part of Your Home

by James on February 4, 2017 · 0 comments

roofing-1808936_640We are all familiar with the concept of keeping a roof over our head when it comes to protecting our family but what happens in the real world if that roof isn’t up to the job?

The roof of your home is one of the most important parts of your home and if it is not able to protect your property from the elements, that can lead to a lot of problems and some big financial headaches.

Here is a look at why you need to keep your roof in good shape and how to face up to the challenge of replacing it when the time comes. There is an overview of your grant and financing options, including how to get an FHA loan and using your homeowner status to get the money you need.

Investing for the future

If you are a homeowner you will know that you now have a valuable asset that could be worth more than you paid for it in years to come, provided you look after it and take steps to protect your investment.

If you don’t pay attention to minor repairs and don’t fix that leak or sort out a problem when it first comes to your attention, you are potentially storing up further trouble down the road and potentially making it more expensive to resolve in the long run.

Tell-tale signs, like a persistent leak, could be sorted out with a few new tiles, but your roof can’t be expected to last forever, and there will come a point when you will need to think about replacing the roof rather than repairing it.

Replacing your roof is a major financial commitment but it should be viewed as necessary in order to protect your asset and the money you spend may well prove to be an investment that repays you in more ways than one.

Getting help

Getting a quote for a replacement roof from someone like GlennStone Roofing Company is just the start of the process, but it is fair to say that many homeowners don’t have the spare money lying around to pay from their own cash reserves.

It is more than likely that you might have to look at some ways of getting the money you need to finance the job.

One of the first options to consider is to see whether you qualify for any sort of government grant or rebate. If you have limited equity in your property, but can boast a good credit rating, these are the two main criteria that could see you gain access to a Title 1 Loan.

This is a scheme that is run by the Federal Housing Authority (FHA) and it is definitely worth running your situation by them to see if you might get help with an insurance-backed loan or if you qualify for some sort of tax rebate, normally available if you choose an energy-efficient roofing option.

Line of credit

If your home is worth more than you originally paid for it and there is sufficient equity available, which is the difference between the price you paid and its current value, there is a good chance that you might be able to negotiate a line of credit.

A home equity line of credit (HELOC) is different to a home equity loan in that it is where the mortgage lender agrees to lend you a certain amount of money against the value of your property as security, rather than borrowing a specific sum of money.

If you are carrying out home improvements that include replacing the roof, it can help to have a line of credit available up to a maximum pre-agreed figure, so that you can budget for the repairs you need to pay for and only draw the specific amount you need.

Your repayments will obviously vary according to how much you borrow against the value of your home, but with a fixed home equity loan you are borrowing a set amount and then making payments over time to repay that amount.

If you know exactly how much you will need to borrow, a fixed home equity loan might work out better, but if you want the flexibility of being able to finance certain projects or don’t know exactly how much you need, the HELOC option might be more suitable.

Bear in mind that both options are secured loans and you are borrowing against the equity of your home, which means that you need to think carefully about affordability because your home would be at risk of foreclosure if you didn’t make the loan payments.

The best option for financing the cost of replacing your roof is down to your own personal financial circumstances, so sit down and do the math before you start the work of replacing probably the most important part of your home.

Glenn Sanders is the President of GlennStone. He was born and raised on a dairy farm in Hartville Missouri, where he learned the value of hard work at a young age. He worked his way up the ladder performing Installation, Sales and Project Management at other roofing and fence companies in town where his strong work ethic, integrity and commitment to his customers made Glenn one of the top performers in his field. GlennStone implements the wealth of knowledge and experience that Glenn has acquired learning both what to do and just as importantly, what to avoid to give the best value and customer satisfaction to their valued clients.

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