How to Finance a New Roof in Idaho: Options and Monthly Payments

What Are Your Options for Financing a New Roof?

Most homeowners use a home equity loan or HELOC, a personal loan, financing arranged through the contractor, or a federally insured FHA Title I property improvement loan. Credit cards can cover a small repair but are an expensive way to pay for a whole roof.

What's the Difference Between a Home Equity Loan and a HELOC?

A home equity loan pays you a lump sum, with a fixed or adjustable rate. A HELOC is a line of credit you draw from more than once, usually at an adjustable rate, so the payment changes with the balance. The Consumer Financial Protection Bureau notes both are second mortgages if you still have a mortgage.

Because both are borrowed against your home, borrow only what you can comfortably repay. On taxes, the IRS says interest on a loan secured by your home is deductible only to the extent the money was used to buy, build, or substantially improve the home. Ask your tax advisor whether a new roof qualifies in your situation.

Does Lakeview Offer Roof Financing?

Ask us about financing during your free estimate, and we'll go over the options for your project. Whatever you choose, compare it with at least one other lender before you sign.

The Federal Trade Commission's advice is plain: never agree to financing through your contractor without shopping around and comparing loan terms. A good roofer won't mind. See our roof replacement service, or start with a free roof inspection.

What Would Monthly Payments Look Like?

It depends on the amount, the rate, and the term. As an illustration, at an 8% APR a $15,000 roof works out to about $304 a month over 5 years or about $182 a month over 10 years.

Your rate and terms depend on the lender and your credit. A longer term lowers the monthly payment but costs more in total interest. For roof prices, see the North Idaho roof cost guide: a full architectural shingle replacement typically runs $8,000 to $15,000 for a standard home.

Are 0% Promotional Offers a Good Deal?

They can be, but read the terms. The Consumer Financial Protection Bureau warns that zero-interest and deferred-interest promotions can cost more than you expect, for example when new purchases on the same card start charging interest right away.

Before you accept a promotion, find out exactly when it ends, what happens to any balance left at the end, and how much you'd need to pay each month to clear it in time.

How Do You Protect Yourself When Financing a Roof?

Compare loan terms from more than one lender, don't pay the full price up front, and don't sign anything you haven't read. Hire a contractor registered with the state of Idaho.

• Shop around: the FTC says never agree to contractor financing without comparing loan terms
• Don't pay the full amount up front, and don't make the final payment until the work is done and you're satisfied
• Don't sign documents you haven't read or that have blank spaces
• If you sign a contract at home, the FTC notes you generally have three business days to cancel
• Check that the roofer is registered: Idaho law requires contractors to be registered with the state

Is It Better to Finance a Roof Than to Wait?

If the roof is leaking or near the end of its life, usually yes. Waiting lets water reach the insulation, drywall, and roof decking, and that damage adds to the cost of the eventual roof.

If the roof still has years left, there's no rush. A free inspection tells you which situation you're in. See signs your roof needs replacing and repair vs. replacement.