Many roofing companies in Salem will send you to your bank for a home equity loan or happily charge your credit card, but there are often better ways to pay for your roof that won’t cost you nearly as much in interest over the long run. In this article we’ll break down some of the common financial traps people face when looking for ways to pay for their roof as well as some of the better payment options available to homeowners.
Roofing is generally regarded, and rightfully so, as one of the more expensive home maintenance items. Your roof is one of the more complicated systems on your home, and it covers the top of your entire house, so there can be a lot of square footage to cover. Add to the fact that quality roofing materials are costly to make, and you can see how the expenses could add up quickly. Let’s dive into how people pay for roofs, starting with the less than ideal options (for most homeowners).
Common financial pitfalls for roofing customers:
- Picking a bad contractor. We know that this isn’t exactly a “payment option,” but it is relevant. If you have a conversation with us, you’ll know that one of our core values is, well, value. We try to bring as much value to our customers as possible for their money. There are contractors out there who cut corners and provide the lowest bid in order to line up more work for themselves. Many times, homeowners are enticed by the lowest bid, thinking they could save hundreds or thousands of dollars, but that is often not the case. A poorly installed roof will fail early, costing the homeowner much more than their initial investment in the new roof. Many of our customers actually came to us after declining our bid in favor of the lowest bid and ask us to fix the mistakes that the cheaper roofers made. In the grand scheme of things, these customers end up paying much more than they would have if they simply picked one of the higher quality Salem roofing companies to begin with. Learn more about how to pick the best Salem roofing contractors for your job.
- Getting a home equity loan to pay for your roof. I want to preface this by saying that home equity loans aren’t always bad, especially if you have job security and a good amount of equity in your home. However, if you recently bought your home and don’t have a lot of equity, you might not have access to all the capital you need for the job. Additionally, if your job is seasonal or you could lose access to your income in any way, you could be putting your home on the line by taking out a low-interest home equity loan. For all of the purposes that a home equity loan could be used for, paying for a roof is probably among the better options.
- Paying by credit card. Credit cards have high interest rates, often between 15-25%, which means you’ll be paying a lot more to borrow money from your credit card company than you might from another lender. If you are paying for roofing repairs and your bill is a few hundred dollars, a credit card can be a great option, but for the bigger expenses, you could end up paying much more than you would feel comfortable with in interest alone.
- Payday loans. These loans are almost never a good option for anyone. Their interest rates are often higher than those of credit cards, and they result in many consumers being trapped and unable to pay them off. We do not recommend these types of loans to any customers.
A better option
- If you have job security and a good amount of equity in your home, consider a home equity loan. You can usually get a very low interest rate, due to your home acting as collateral, so this is a favorable financing option for many of our customers.
- Contact your credit union. Credit unions often offer personal loans with interest rates much lower than credit cards. You can often get a single-digit APY from a credit union if you have a good credit score.
- Ask your Salem roofing companies if they offer financing through partners. Many roofing companies in Salem actually offer flexible payment and financing options to their customers through unique partnerships with banks and other lenders. We offer qualified customers a few great options, including 0% interest installment plans, 12 months of no payments and no interest, and standard loans of as low as 9.99% APY. Many homeowners can afford a $150-300 per month payment, but many cannot afford to pay the full balance of their roofing project in cash.
If you would like to learn about other financing options, contact us today. If you’re looking for a recommendation for your unique situation, we recommend contacting a qualified financial advisor for help. If you are ready to get started on your roofing project, give Slate & Slate Roofing a call today at (503) 585-2338, or send us an email with the contact form on the right-hand side of this page. We would love to become the Salem roofing contractors you feel comfortable referring to your friends and family, as we have for so many in our 25+ years already.