Information on roofing financing for your Maine home by David Deschaine
Building a new roof or replacing an old one not only protects your house from leakage and other structural damages, but also adds significant value to your home, which can be realized when you decide to sell the property off. However, since roofing is a complicated process that has a slew of multifarious factors related to it, it is an expensive proposition too. A new roof can cost more than $15,000, and the expenses can go even higher depending upon the designs, roof shape, and the material chosen. Hence, Roof Financing In Maine often becomes an obvious choice for hosts of property owners, who do not have the budget to afford the cost of a new roof or replacement.
Discussed below are few options for such property owners.
Types of Roofing Financing
Home improvement loans or roofing financing are generally available for short-term and long-term. Discussed here are different options under each category.
Short Term Financing
When it comes to short term roof financing, there are broadly two types of finances available:
Personal Loan - This is a short term loan, similar to that of car loan. There are several banks and loan agencies offering personal loans, but at a higher rate of interest. Depending on your credit worthiness and norms of different banks and financial institutions, you can obtain a personal loan for any small amount, which you can utilize for building a new roof or replacement. These generally come with repayment duration of 2-5 years. Tax deductions are often not allowed on personal loans.
Home Equity Line of Credit - This is an adjustable rate line of credit, where the lending company typically allows the borrower to have 80% of the total value of the home, minus the balance from any existing mortgage.
Besides these, you can check for community based home improvement grants or local Roof Financing In Maine available for short term.
Long Term Financing
Although these are generally not preferable for replacing an old roof or building a new one, you can consider the following options if need be.
Value Added Mortgage - These types of loans can be taken for maximum of 90% of remodeling costs, and includes other home improvement expenses as well, besides roof replacement, repair or a new one.
Refinancing an existing mortgage - In this type of mortgage loan, the borrower is eligible to take up to 80% of the total appraised value of the home or roof. It is basically about swapping out the existing mortgage loans, thus, leveraging the built-up equity to get refinanced for a bigger loan.
Second Mortgage - If you are planning to take a second mortgage for Roof Financing In Maine, you can have up to 80% of the total value of the home, minus any balance on an existing mortgage. The term of these loans can range for 5-20 years, providing ample time to repay, depending on the amount of loan. There are certain closing costs, which may apply to these loans.
Looking For A Home Improvement Loan, Planning Ahead Normally & should Pay Off
The best way to acquire a lucrative finance option for your roof is to research extensively about the different choices available in your area and making a suitable decision depending on your capability to repay.