Top 4 Options to Finance a Metal Roof Replacement Project

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installing new gutter

Buying a new metal roof can be a significant purchase. Be it steel or copper, it can set you back at least nearly twice as much as the price of an asphalt-shingle roofing system. If you do not have that kind of money lying around the house, you need to seek financing to fund your much-needed roof replacement project in no time.

So, where should you borrow the funds? Most metal roofing companies would recommend the financing options below:

1. Credit Card

The biggest advantage of using plastic is convenience. If you already have one with enough credit, you could simply provide your credit card number to make a payment and spare yourself from the cumbersome paperwork necessary in a traditional loan application.

If you have a credit card with a 0% annual percentage rate, you may not be required to pay any interest for purchases made over a certain period. You may also earn points you can exchange for rewards such as cash back and airline miles.

However, many American merchants do not offer interest-free installment plans. In other words, the entire project cost will probably not be broken into smaller and more manageable installments. Although you may just pay the minimum balance, it will still be large enough to affect your finances moving forward. Being late on your payment or missing one comes with several consequences too.

2. Personal Loan

A personal loan is unsecured, so you will not be required to use any collateral to secure funding. The money you could borrow can be used for any purpose. If you have something left after the project, you may spend however you see fit.

While taking out a personal loan is less risky on your part, you will have to contend with slightly higher interest to enjoy the luxury. If your credit less than stellar, you may struggle to find a lender who will be willing to loan you enough funds to buy the metal roof you want.

3. Home Equity Line of Credit (HELOC)

A HELOC is a cross between a mortgage and a credit card. Its maximum loanable amount depends on your available home equity. Therefore, the less principal you have left in your mortgage means the more you could borrow. As a line of credit, you have the freedom to withdraw funds only if and when you need them. Backed by your house, a HELOC’s interest is relatively cheap.

A HELOC might come with a caveat, though. HELOCs have a draw period, which is the time limit that dictates until you can withdraw money based on your available credit. During this period, you can pay just the interest monthly. Interest-only payment can minimize your expenses, but you might be required to pay the remaining balance in a lump sum right away once the draw period ends.

4. Home Equity Loan

Like a HELOC, this loan is tied to home equity. However, its repayment is fixed and predictable like a personal loan. A home equity loan’s interest is marginally higher than a HELOC’s, but the extra charge is usually worth it.

Not a single metal roof replacement financing option is right for everyone. Study each source of credit carefully to apply for the most favorable and sensible one in your situation.

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