When you need to replace your roof or have other home improvement needs, your expenses may outweigh your budget. If you find yourself in that situation, you may wonder if it’s better to wait or consider financing. There are different ways to go about home improvement financing, all with pros and cons.
Personal Loan, Home Equity or Refinance?
When interest rates were historically low, cash out refinancing was often the best option for home improvement financing. However, today, many people have an interest rate 3% or lower than what they could secure today making this option the least beneficial option for most. Today, a more popular choice is a home equity loan. Home equity loans of lines of credit have one major drawback; and that is that they are offered at a variable rate. This benefits you when the interest rate goes down, but not when it goes up.
That leaves a personal loan. Personal loans, whether secured or unsecured, have a fixed interest rate. Depending on several factors, interest rates can vary from 0% for a short term to about 7% today. Some factors include whether you select home improvement financing through your contractor’s provider, your credit history, the amount you financing, and the term you want. For many homeowners, this is an affordable way to complete their home improvement with a fixed payment.
What About Delaying the Improvement?
If you’re considering a home improvement simply for aesthetic reasons, then there is no reason why saving for a bit longer is a bad idea. However, if you need a roof replacement because your roof is leaking, unsafe or you have storm damage that is only partially covered by your homeowner’s insurance, waiting may end up costing you more than the interest in the long run. A roof leak that is small and hasn’t yet led to damage in your attic or the rest of your home can quickly do so. Especially if we have heavy rain or high winds – which happens often in November in Winston-Salem.
Cooley Roofing Offers Financing Options
Whether you’re hiring us to handle a roof replacement or a total exterior home makeover, we offer home improvement financing through Hearth Financial. There are several options based on your needs and credit. Click here to apply privately. We never ask for your personal information. If you’ve yet to schedule your free quote for a roof replacement, new siding or new windows, call us today to schedule your appointment – (336) 766-6488 or fill out our contact form.
