For most homeowners in Alabama, getting a new roof installed is one of the biggest expenses they’ll face. A full roof replacement can cost anywhere from $5,000 to $30,000 or more depending on the size of your home, the materials used, and other factors. Since a roof is such a major investment, many homeowners look into financing options to make it more affordable. Here are some of the top ways to finance a new roof in Alabama:
Home Equity Loan or Line of Credit: If you have built up equity in your home over the years, taking out a home equity loan or line of credit is often one of the best ways to pay for a new roof and other home improvements. With a home equity loan, you borrow a lump sum secured by your home’s equity. A home equity line of credit (HELOC) works more like a credit card, where you have a revolving balance and only pay interest on what you borrow.
The benefits of home equity financing are that the interest rates are relatively low compared to other loan types, and the interest paid is often tax deductible. The downside is that you are putting your home up as collateral, so you could potentially face foreclosure if you fail to make payments.
Cash-Out Refinance: Along the same lines as a home equity loan, you can refinance your mortgage and take out some extra cash to cover the cost of a new roof. This option tends to have lower interest rates than home equity loans, but the closing costs are typically higher. You’ll also be restarting the clock on your mortgage, which now stretches out over a new 15 or 30 year term.
Contractor Financing: At Hinkle roofing, we can help customer arrange special financing with no money down and 0% interest for 12+ months. If you pay off the roof before the promotional period ends, you can avoid all interest costs. See one of our representatives for complete details.
Personal Loans and Credit Cards: Unsecured personal loans from banks, credit unions or online lenders can provide the funds you need to pay for a new roof. These loans typically have higher interest rates than home equity options, but no collateral is required. Using credit cards is another possibility, but keep in mind the high interest rates – you’d want to pay off the full balance quickly before interest charges accumulate.
Government Assistance Programs: Depending on your income level and circumstances, there are various government programs in Alabama that provide assistance for home repairs like roof replacements. These include:
- Community Development Block Grants
- Home Investment Partnership Program (HOME)
- USDA Rural Housing Repair Loans & Grants
- Weatherization Assistance Program
You’ll need to meet strict income, geographic and other eligibility requirements. But if you qualify, these programs can provide low or no-interest loans, grants, and other aid to cover some or all of your roofing costs.
Insurance Claims: If your roof has been damaged by storms, hail, fallen trees or other insured events, your homeowner’s insurance may help cover all or part of the roof replacement costs. This is a case-by-case determination based on your specific policy coverage. Even if your insurer initially denies a claim, you can often appeal with the help of a public adjuster or attorney.
When exploring financing options for a new roof in Alabama, don’t sacrifice quality to save a little money. An improperly installed roof could cost you far more down the road. Contact Hinkle Roofing today at (205) 324-8545 or through our online form for a free roofing quote.
