Home improvements can increase the value of your home and your quality of life, but they come at a rather hefty cost. And not everyone is liquid enough to pay for such projects with cash upfront.
Not to worry though—you still have lots of financing options. But which one’s the right one for your circumstances? John Peters Roofing, one of the state’s top roofing contractors, helps you find the right financing option by listing some of them below.
Getting a new mortgage to replace your existing one is one way you can receive more funding for home improvement projects. The amount you’ll receive would be equal to the current market value of your home, minus your remaining mortgage.
Since you’ll be getting a new mortgage, make sure to compare the different repayment terms in the market. After all, this is a great opportunity for you to get lower interest rates and better deals. Don’t get too complacent though, as what would seem to be great deals might have a few hidden costs.
Home Equity Line of Credit
But what if you’re quite happy with the interest rates on your current mortgage? If that’s the case, you’d be better off getting a home equity line of credit to secure funding for more extensive home improvement projects, like a roof replacement for example.
A home equity line of credit is a second mortgage that allows you to borrow up to 85% of your property’s value, minus the remaining amount on your first mortgage. Keep in mind that a disadvantage with this option is that you risk losing your home should you fall behind on your monthly payments.
A home equity line of credit is only viable for homeowners who have a lot of equity stored in their home, however. If that’s the case, they can get a personal loan instead.
The requirements for a personal loan are less restrictive than the aforementioned, but they come at a higher cost and give shorter repayment timeframes. It isn’t too bad for homeowners with good credit scores though; they can still get reasonable interest rates, provided they do their research.
Not everyone has the time to scour the internet for the best loan deals, however. What you could do instead is ask your contractor if they offer financing options; most offer flexible repayment schemes for their customers.
Are you wondering, “Who are the contractors who offer financing for roofing near me?” John Peters Roofing offers flexible financing for our customer. For inquiries, call us at (317) 786-3315 or fill out this form. We serve homeowners in Indianapolis.