7 methods to pay for your new roof

7 Methods to Pay for Your New Roof

Payment for roof replacement and roofing repairs can be handled in a number of ways with each option offering pros and cons to the home owner.

 

Which choice is perfect for you and your home depends on the following factors:

 

  • The amount of funds you have on hand
  • The number of hoops you’re willing to jump through to save money
  • Your annual income
  • Your credit rating (whether you have good credit or bad credit)
  • Whether your home has roof damage caused by a major storm
We will discuss all your options in detail below.
 

Put Your New Roof On A Credit Card

Can I put my roof replacement on a credit card? The brief answer is yes!
Putting your new roof on a credit card can be useful if you have a card with generous rewards and incentives, especially cash-back bonuses. A new credit card offering 0% interest over 12 months, for example, allows you to place the entire project on the card then pay it off throughout the next year.
 
High interest rates (if you don’t have a “no interest” incentive) are important deterrents to using your credit card for roofing. If you have more loan options available (like a home equity loan), you’ll save extra money over time compared to using a higher interest credit card.
 
Another disadvantage of using a credit card is the processing fees charged to the roofer when they run your payment. These transaction fees can range from 3% – 5% depending on the card you’re using, which adds up to a significant amount when you’re talking about a $10,000 price tag. For this reason, almost all roofers who accept credit cards will pass these fees on to the buyer if this method is selected. However, using a credit card to finance your roof or other major home improvement project may still be optimal if there are related rewards and/or bonuses to be earned.
 

Use Cash or Check For A New Roof

Paying all at once with cold hard cash is absolutely the easiest and simplest way to get the job done! Not everyone has the means to pay for a new roof with 100% cash (or check), however. And even if you do have cash on hand to pay for the project in full, doing so may not be your preference.
 
Why is this method so simple? There’s no complicated paperwork or approval process to bother with, besides the contract with your chosen roofing company. All that’s required is a deposit, then a transfer of the balance due after the roof is installed.
 
Why do roofers need a deposit? Because deposits make sure that everyone is serious and on the same page about the project. Without a deposit, contractors run a risk of ordering the materials, spending time on planning, then having the homeowner ultimately back out at the last minute. Though this isn’t common, it is a considerable drain of resources for contractors large and small whenever it happens.
 

New Roof With Government Funded Home Improvement Loan

Want the United States government to pay for your roof? It may seem like a dream scenario, but there’s a possibility you may qualify for the FHA Title I Property Improvement Loan if you own a single-family home.
 
The Department of Housing and Urban Development offers these loans through pre-selected lenders. In order to qualify, there are a number of conditions you need to meet. The property must be a single-family home that has been occupied for at least 90 days.
 
As stated by HUD, the loan must also be used to “substantially protect or improve the basic livability or utility of the property” and “be used in conjunction with a 203(k) Rehabilitation Mortgage.”
 
There is no prepayment penalty on these loans. For further information, please view this page.
 

Personal Loan For A Roof

Are personal loans available for roofing, vinyl windows, and other home improvement projects?
 
Depending on approval factors which differ from lender to lender, you may be able to use a personal loan to fund your roofing project. The most common funding source for a personal loan is a bank or financial institution such as Bank of America, Chase Bank, Wells Fargo, or a local bank in your town.
 
If you choose this route, you’ll want to explore your options in order to save the most money in the long term. Different creditors will offer varying rates of interest and repayment terms, so it is essential to consider which factors are most important to you before you start looking for a lender. The two major factors when considering a personal loan are loan length and interest rate.
 
Some loans, for example, will be short term (2-6 years) while others will be long term (15+ years). Interest rates can vary from under 5% to over 20%, depending on your credit score, income, and general creditworthiness set by the lender.
 

Pay For New Roof With Home Equity Loan

According to the Federal Trade Commission, a home equity loan is a “loan for a fixed amount of money that is secured by your home.” These loans are repaid similar to a mortgage, with fixed payments over a set term – for example, $99/month for 10 years.
 
Home equity loans can be preferable if you have equity built up and if you’re looking for a non-variable and predictable payment schedule. This type of loan is desirable to many homeowners because interest rates tend to be much lower than on personal loans and loans offered through a roofing company. Unfortunately, it can’t be all sunshine and rainbows. There are notable downsides to this method of financing…
 
The most substantial drawback of a home equity loan is that if you fail to make payments (aka ‘default’ on the loan), the lender can foreclose on your house! This is because the collateral for the loan is your home. As you can imagine, most lenders require great credit scores and continuous income to qualify for a home equity loan. If this sounds like you, then we suggest looking into it.
 
And if you want to estimate how much funding may be available to you by means of a home equity loan, use this formula to calculate your available equity:
 
Get the current value of your home
Subtract the amount you still have to pay on your mortgage
Multiply the difference by .85
You can only borrow 85% of your available home equity by law, so if the current value of your home is $400,000 and you owe $350,000, then the outstanding amount is $50,000. Now multiply that $50,000 by .85 (to get 85%), and your available home equity is $42,500.
 
As you can see, the amount of funds that may be available to you through a home equity loan could be substantial. So, if you think this is a viable option, reach out to your bank or chosen lender to check current interest rates and availability.
 

Insurance Coverage For New Roof

One of the trickiest and most difficult means for paying for a new roof is by means of an insurance claim.
 
If the source of the roof damage is obvious, then it may be a bit easier (for example, if a tree falls through your roof). In this case, we recommend you do whatever possible to ensure your insurance company pays for the repair or replacement. But in less apparent circumstances, getting help from your homeowner’s insurance company can be especially challenging.
 
Insurance payouts for roofs that have gotten progressively worse over time can become non-viable because most homeowner insurance policies don’t cover normal “wear and tear” on any part of your home’s exterior. In these cases, insurance companies (such as Geico, Allstate, or MetLife) will usually cite the roof’s age or lack of maintenance when they deny your claim.
 
If you think you may be eligible for insurance to cover your roofing project, then we recommend reaching out to your insurance agent directly to talk about a potential claim. Just remember that if the exact case is not obvious, you will likely be denied.
 

Ask For Roof Company Financing

If you don’t have cash on hand to pay for the roof in full or any home equity available to spend on replacing your roof, then you could opt for a contractor who offers financing themselves.
 
Since most homeowners don’t like to pay cash for huge home improvement projects, some established roofing companies can help by offering financing directly through them or through a third-party financing vendor. Compared to home equity and personal loans, this process can be much simpler and more straightforward because most of the steps are done in-house.
 
Another benefit most residents don’t think about is that if a roofing company can assist you with financing, then they are much more reputable than a company who does not have access to these resources. It means that they are in good standing with their own lenders and you can place greater trust in them to do an excellent job replacing your roof!
 
If you’d like to finance your roof through Blue Ribbon Roofing, please reach out to us directly and we’ll be glad to help you get started on a preliminary financing application.
 

How Should I Pay for My New Roof?

The decision is ultimately up to you…
 
If you have enough cash in your bank account to adequately pay for the project in full, we suggest cash. It’ll be the simplest way, and when it’s done, it’s done.
 
If you have enough home equity and can secure a home equity loan from a trusted lender, then this is one of the most cost-effective options, as long as you’re okay with using your house as collateral.
 
If neither of the above work for you, then think about financing directly with the roofing company you choose.
 
Whatever you decide, know that Blue Ribbon Roofing is here to assist you. We have years of experience helping homeowners who have chosen the various methods of payment discussed above and would love the opportunity to earn your business as well. To get started on a no-obligation roofing estimate, reach out to us today!
Christmas Lights by Blue Ribbon Roofing

Christmas lights… it’s the gift that keeps on giving the whole year!

Believe it or not, it’s that time of year again. Time to put up the tree, adorn it with lights and hang the stockings with care by the fireplace (unlit of course here in Houston).

For some of us, many of whom have seen Christmas Vacation one too many times, our expression of holiday cheer ends up spilling out of the home, onto the lawn and eventually onto the roof. After every first good downpour of the New Year, before I even have a chance to break my New Year’s resolution, I begin receiving calls about leaking roofs. Upon inspection, there seems to be a pattern of holes in the roof that spells out some cheerful holiday sentiment such a Merry Xmas, Tis the Season or something of that nature. Well, there is one thing for sure… they are no longer cheerful.

This year I was hoping to save folks the post-holiday headache and expense and advise everyone not to nail or even staple lights directing into the shingles. Ideally, you should avoid putting lights on the roof path from a personal safety standpoint let alone for the fact it invalidates your manufacturer’s warranty.

However, if your holiday cheer must be spread to the roof, I would highly recommend hiring a professional. As with anyone you hire, I suggest verifying their reputation through Google reviews, the BBB Houston Chapter and your neighborhood website (sometimes contractors will offer group discounts to neighbors :)). This will save you money you probably already spent on Christmas and have you headed in the right direction for the New Year… NOT falling off a roof.

So Happy Holidays everyone and stay safe and off your roof.

Storm Season Roof Inspection

Storm Season Is Here, Time for A Roof Inspection

As we all know, storm season can be particularly brutal here in the Houston area. High winds, hail, hurricanes and frequent thunderstorms can have a devastating impact on your home if left unprotected. A small issue can transform into a major one during one of these events.
Just like with your automobile or health, it is a good idea to have an annual checkup. Frequent maintenance can prolong the lifespan of your roof and stave off the damaging effects of a storm. It is a good idea to get a professional opinion so you can rest easy at night knowing that your home is protected.

The main issues are generally penetrations such as plumbing jacks, HVAC vents and chimney flashings. There can be larger issues such as missing, torn or wind lifted shingles which are not noticeable to easily detectable from the ground.
Why Proper Roof Ventilation Is So Important

The importance of properly ventilating your roof cannot be stressed enough especially here in Texas. Underventilation your roof has many short-term and long-term ramifications for your home. Without proper airflow, heat gets trapped in the attic and causes the shingles to become brittle and blistered. These issues prematurely age the roof. An overheated attic raises ambient temperature in the rest of your home as well, taxing your air conditioner and lessening the lifespan of the unit.

There are multiple options available for ventilating your attic. Within these options, there are two main types: passive and active ventilation. Active ventilation refers to electric fans, solar fans and turbines. These are good options that actively siphon heat from your attic and expels it from the roof. The downside of these options are the higher costs of the materials and labor as well as maintaining the equipment. Anything with moving parts, such as a spinning turbine or an engine that powers the motor of an electric fan, eventually wears out over time. Passive systems, on the other hand, have no moving parts and rely on the airflow. Air enters through the intake, then pushes the air in the attic through the vents on the roof. Heat naturally rises, so placing the vents at or near the top of the roof is most effective. Well placed vents at or near the peak of the roof allows for the heat to escape from the attic at its highest point. Conversely, the intakes should be at the bottom of the eaves as much as possible to provide the greatest amount of airflow.

Both active and passive systems work well when designed to accommodate the needs of the individual home. Please call us at 713-808-1990 to get a free evaluation.

Impact Resistant Shingles

Impact Resistant Shingles. Are they worth it?

Every now and then a customer will ask about upgrading to impact resistant shingles. These types of shingles come in many shapes and sizes but are typically thicker and heavier than traditional shingles. They are designed to defend against updrafts, crosswinds and all manner of gusty, blustery weather. They carry a Class 4 rating which means that during a 2218 hail Impact test where they drop a steel ball from 20 feet, no evidence of cracking or tearing is observed. These impact rated shingles are able to achieve these ratings by adding a durable reinforcement on the underside of the shingle. This “backer shim” contains an impact resistant reinforcement.

Now that we understand what makes an impact rated shingle different, let’s get back to the question of are they worth it?

Well these shingles will theoretically last longer because of the extra reinforcement they carry. Due to this enhanced life expectancy, many insurance companies will offer discounts to homeowners that install them. These savings vary from carrier to carrier, some of which give considerable premium discounts depending on your area.

Another thing to consider is the frequency with which your home gets adverse weather. Here in Houston we can see all four seasons in four days which makes us pretty susceptible to hail and high winds pretty often. With the added reinforcement of the impact rating, it may make overall maintenance of your roof less expensive and a full roof replacement less likely.

So we know why we would all want impact rated shingles… then why don’t more people have them? It boils down to the cost of the upgrade. Whether you are paying for a full roof replacement out of pocket or going through the insurance, it will cost you a pretty penny to upgrade to impact rated shingles. Insurance companies will only pay for the replacement of the type of shingle currently installed, so the upgrade to an impact shingle will be your responsibility. What kind of price point are we talking about here? Well the shingles can add 10 to 20, sometimes even 30% to the cost of the materials depending on the manufacturer and type of impact shingle you choose. That can add up pretty quickly.

Soooo… ARE THEY WORTH IT?

Unfortunately we cannot give you a blanket answer. That is going to boil down to your individual situation. As with any major purchase, it is best to evaluate it with the return on investment. To recap, some of the things to consider here are what kind of discount can you get, how long you plan to stay in your home, how often you see hail and high winds and of course the price difference for the upgrade. Finding out the answers to these questions should help you decide what is best for you and your home. As with any roofing situation, we here at Blue Ribbon would love to help! Give us a call for a free inspection and we can help you answer some of these questions and get you on your way to a new roof you feel comfortable with.

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Blue Ribbon Roofing is an award-winning Houston roofer that takes pride in educating homeowners, taking ownership of our job, and doing what’s right. Our roof replacement, roof repair, roof inspection, and roof insurance estimate services will give you the roof you feel safest with.