The need for a roofing project usually presents itself when you least expect it, and chances are your finances aren’t ready for this type of expenditure. Your roof isn’t something you think about until it causes problems, such as leaking, rotting, and general wear and tear. Luckily, there are options available for financing a new roof, but what should you know before signing the dotted line?
1. Fees
Just because a company accepts financing doesn’t necessarily mean that they will do so without charging fees, often a small percentage of the finance agreement. These fees are in addition to fees charged by the lending bank, including early repayment fees, origination fees, and late payment fees.
2. Interest Rates
Whatever financing option you choose, you’ll be repaying with interest. How much interest the finance company charges will largely depend on the terms you choose, your credit score, your income, and other factors.
Beware of the 0-interest options. These are fantastic if you can pay more than the minimum payment each month. Paying only the minimum payment will most likely not allow the balance to be paid in full by the end of the term, and after the term expires, finance charges and interest will be levied against you from the initial date of the loan.
Divide the balance by the term and pay that amount rather than the minimum balance. For instance, a $12,000 loan, interest free for two years, will require monthly payments of $500 to be paid in full within the two year term. This is what you should pay, regardless of what the “minimum payment” would be, to ensure the balance is paid off by the time the 0-interest term ends.
3. Terms
Choosing the right payment terms is an important consideration. Terms that are too long will incur higher interest rates, but terms that are too short may financially hinder your ability to repay the loan. Find a happy medium: what’s the most you can afford to pay per month? Once you’ve established a budget, you can find the best terms for your financing plan.
4. Saving Money on Your Loan
If you can, find a financing option that will allow discounts for things such as autopay and paperless billing. You may also consider a credit card instead of a financing option if you can find a zero interest card, or one with a lower interest rate than offered by the financing company.
In addition, if you belong to a credit union you may find financing options through your bank that can save you money in the long run.
Need a New Roof? PJ’s Roofing has You Covered!
PJ’s roofing is a proud partner with GreenSky Financing. We have two options to make financing easier for you, so you can get the roofing services you need right now:
Reduced Interest Rate for 84 months: Enjoy seven years of reduced interest rates on your roofing project.
No Interest if Paid in Full in 12 Months: Take a year to pay back your loan with interest free financing for up to a year.
Ready to learn more? Contact PJ’s roofing for a free consultation and quote, and make sure to ask about our special financing options.
