Finding out that you need to replace the roof on your home can leave you facing a tough financial decision. Should you drain your bank account or borrow the money for a roof replacement? The main drawbacks of financing a new roof are the hassles and extra costs that come with obtaining a loan and the interest charges you’ll pay. However, the advantages of roof financing often outweigh the negatives. Here are a few of the ways a roof replacement loan can make your life easier.
No-Hassle Loan Options
With an FHA Title 1 home improvement loan like the ones offered through our financing partner, Admirals Bank, you can borrow without the usual equity requirement or the cost of having an appraisal done. This type of loan also offers fast approval time frames, flexible terms, fixed interest rates and no prepayment penalties.
Potential Income Tax Savings
The interest on these home improvement loans is deductible, which can help reduce the amount you pay in Federal income tax if you itemize your deductions. If you’re wondering whether you can deduct the interest, talk to a knowledgeable professional accountant or a trusted tax preparer.
Low Interest Rates
It’s a good time to take out a loan for home improvements like a new roof because interest rates are near historic lows right now. Keep in mind, though, that the exact rate you’ll qualify for depends on your credit history and score.
Keep Savings Intact
If you opt for a loan instead of paying cash, you can borrow the entire amount needed, pay for part of the cost of a new roof and finance the remainder, or take the opportunity to do additional improvements. Borrowing can give you the freedom to maintain a comfortable cushion against emergencies, invest your cash, or save up for a vacation or planned purchase.
Avoid Temporary Repairs
If you don’t have the money available to pay for a new roof, you might be tempted to settle for a temporary repair that doesn’t solve the underlying problems over the long term. By borrowing to have your roof replaced instead, you’ll not only save the money you’d pay for a short-term fix, but you’ll also avoid the expense and inconvenience of repeated repairs in the near future.
If your home needs a new roof and you’d like to explore your roof financing options, contact us today at A-1 Property Services Inc.