Home improvement projects, such as roof replacements, are costly. While they add more comfort, function and beauty to any home, it’s a fact that home improvement projects of any kind require money. But, if you see the need for it and really want it done, you have a few options.
In this article, we will take a quick look at some of the ways you can finance your home improvement project, and discuss their pros and cons so you can make a wise choice.
Home renovation and finance experts agree that it’s always better to avoid taking loans for practically anything other than an emergency. You don’t have to pay charges or interest, and best of all, you won’t have to use your home as collateral.
With high interest rates, credit cards are best used for small home improvement projects that won’t cost you more than a few thousand dollars, like a roof repair. Best use zero-percent credit cards as these have zero interest for a short period of time. Try to pay the balance back before the period ends.
Personal loans are easy to get and won’t require you to use your home as collateral. They do, however, tend to have higher interest rates compared to home equity loans, and might cost you when closing costs, origination fees and any other charges are factored in.
While some individual lenders offer lower rates, you’ll need to be careful as some non-banks can charge very high rates.
Home Equity Loans
This type of loan uses your home as collateral so you can borrow money. The amount you can borrow depends on your equity: the actual value of your home minus your existing mortgage.
This type of loan is risky. If ever you borrow off your home and are not able to pay it back, you’ll end up losing it even after you’ve improved it. Be prepared.
If you’re looking to improve your home via a roof replacement project, look no further than Expert Contracting. We are one of the few GAF Master Elite® Certified roofing companies in the area. Call us at (716) 572-7303 or fill out our online form to request a free, no-obligation consultation at your convenience. We offer the best roof replacement and repair services to homes in West Seneca, NY.