Your home needs a new roof; now what? How will you pay for it? Should you take out a separate loan or cash out your home’s equity? Check out this financial guide, which helps you explore the different ways available to pay for your new roof. We’ll also discuss a few key financial considerations of investing in a new roof.
How Much Is a New Roof?
The cost of a new roof varies depending on many factors, including materials and location. Ohio residents can expect to pay between $7,000 and $10,500 for a new roof. Of course, if you have a larger home or choose a high-end material, you can typically expect to pay more for a new roof. The specific Dayton roofing contractors you use will also make a big difference in price.
How to Pay for a New Roof
Not everyone has thousands of dollars lying around to purchase a new roof. But if your roof is damaged and needs immediate repairs or replacement, saving up may not be a reality. You may have a few other options, including a personal loan, a home equity loan, or a cash-out refinance loan. A personal loan is similar to any other credit type. You could purchase your new roof on an existing credit card or open one up with a high enough limit for the same purpose.
A home equity loan includes opening a revolving line of credit that allows you to borrow against your home’s equity, similar to a credit card. However, a home equity line of credit typically offers better rates. With a cash-out refinance, you can borrow against your home’s equity in the form of a cash payment. Some lenders are willing to offer a loan difference of up to 80% of your home’s value between the leftover loan on the home and the home’s current value.
Filing an insurance claim may also be a possibility for homes that suffered roof damage due to a natural disaster. Most insurance companies won’t replace a roof just because, but if you suffered a tornado or other natural weather damage, they may cover the cost minus your insurance deductible.
In some cases, you may also be able to repair your roof until you have time to save up for a new roof if you don’t want to take out a loan. If you really want to invest in a new roof now, some roofing companies may offer payment plans. A home warranty claim may also be an option for some homeowners.
Financial Considerations of a New Roof
Investing in a new roof is a big purchase, so it’s important to consider the many financial aspects. One of these considerations is repair versus replacement. It may be tempting to repair your roof’s damage rather than replace it, but this may not always be the best financial decision to make. You may end up having to replace your roof in the next year or two, essentially meaning you’re throwing the money that paid for repairs out the window. It’s always important to compare how long you have left on your home’s roof against the cost of any necessary repairs.
Another important consideration when getting a new roof is that doing so will increase your home’s resale value. This means your home should be worth more after adding a new roof. This is because potential home buyers will be willing to pay more for the home, knowing that they won’t need to invest in a new roof anytime soon. However, to protect your resale value, make sure you keep clear records of the new roof, including its install date.
You may also notice other cost savings with a new roof, specifically in your heating and cooling bills. Newer roofs are better able to insulate your home, which means you don’t have to use as much air conditioning in the summer months or heat in the winter months.
Choosing the Right Roofing Company
Not only does choosing the right roofing company affect how much you pay for your new roof, but it can also have an impact on your overall experience. A new roof is a big purchase and one that directly affects your home, so it’s important to give this big decision the time and consideration it deserves. Take the time to compare roofers and compare prices. However, choosing the cheapest quote isn’t always the best strategy either. Instead, consider value versus cost.
Most homeowners will need a new roof at some point in homeownership. Understanding the average cost of a new roof in Ohio, plus your options for paying for one, can help you navigate the roofing installation process. Choosing the right roofing company can also make a big difference in your experience.
