Roof Financing – How to Pay for a New Roof – The Ultimate Guide

When the time comes, replacing your roof is a big, important, investment. Since a new roof can cost $10,000 or more, paying cash is not an option for most homeowners. Financing, by taking out a home equity line of credit or a home improvement loan, is how most homeowners pay for the roof they need.

New Shingle Roof

$7,500
Average price
New Metal Roof

$14,500
Average price
New Flat Roof

$8,225
Average price

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A line of credit or a loan allows a homeowner to pay in installments spread out over time, which is easier to handle than an upfront cash payment in full. This guide will help you sort out the different types of home renovation loans so you can find the one that best meets your needs.

The first step is to contact at least three licensed contractors to discuss your roofing options and to get estimates on the cost of a new roof. Knowing how much your new roof will cost will help determine which type of financing works best for you.

Home Equity Lines of Credit (HELOCs)

HELOCs are revolving credit lines that typically come with variable interest rates. Your monthly payment amount will depend on the current interest rates and your loan balance. HELOCs are very similar to credit cards, except the rates are generally significantly lower because your home serves as a collateral, whereas credit cards are considered a form of unsecured debt (with some of the debt often becoming uncollectable for Credit Card companies, hence requiring high interest rates) with much higher interest rates. Once, you are approved for a certain HELOC amount, you can then draw any amount, at any time, up to your credit limit. You are allowed to pay the loan down or off at will.

HELOCs have two phases. During the draw period, you use the line of credit as needed, and your minimum payment may cover only the interest due for that month. But eventually, usually after ten years, the HELOCs draw period ends and your loan enters the repayment phase. At this point, you can no longer draw funds and the loan becomes fully amortized for the remaining years.

HELOCs offer low closing costs and are very convenient. They offer low monthly payments during the draw period. The downside of these loans is that they use variable interest rates, meaning the interest rate can rise in tandem with the Federal Reserve’s prime rate. Also, your monthly payments can significantly increase once the repayment phase begins and you begin paying both the interest and the principle on the loan.

Homeowner’s Insurance Coverage

You might be able to use your homeowner’s insurance policy to cover the cost of a new roof. Many homeowners’ insurance policies also include roof replacement insurance, and hence will cover roof replacement if the roof was severely damaged by fire, wind or hail. However, if your roof degraded due to age and general wear-and-tear and/or due to a lack of maintenance (no roof cleaning, allowing moss outgrowth, not dealing with issues like loose shingles in time, etc.), the insurance company won’t cover the replacement. One thing to consider is that making a claim on your insurance will, most likely, raise your premium in the future.

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GAF vs. CertainTeed Roofing Shingles: Cost, ROI – Definitive Guide for Homeowners

GAF and CertainTeed combine for a huge piece of the roofing shingle market. This comparison hits all the important factors in deciding – Quality, cost, styles, pros and cons of each option, warranties and more. Our guide also addresses the return on investment and explains when either GAF or CertainTeed shingles are a better choice for a homeowner.

Let’s put the comparison into perspective right from the start:

CertainTeed, by every measure, is the premier manufacturer of exterior building materials and a winner of the Professional Remodelers Best in Class award.

CertainTeed Landmark series Shingles Roof in Weathered Wood

While most of its lines are upmarket, CertainTeed has begun making less expensive lines like the Landmark Series to compete with the value-priced asphalt shingle brands.

GAF, the largest manufacturer of residential roofing materials, makes mostly good-quality shingles with a few premium lines like Camelot II Shingles that are exceptional.

GAF Premium Asphalt Shingles: Camelot Williamsburg Slate

CertainTeed did not appear worried about the cost a decade ago, and it still dominates the “best” category of roofing shingles, though competition is certainly increasing.

Most GAF shingles are cost-conscious products that compete with Owens-Corning, IKO, Tamko, Malarkey and similar brands for “basic and better” ranges — niches it ranks first in.

  • CertainTeed: Mainly high-end, high-cost products with some affordable lines.
  • GAF: Mainly affordable shingle lines with some high-end products.

Here are some important qualitative and quantitative details to consider within the larger scope of CertainTeed vs. GAF shingles debate:

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Top 10 Siding Materials: Costs, Pros & Cons and ROI

Today, you have more attractive house siding options than ever before. This buying guide details the top 10 siding materials to help you decide which type will give your home the look and durability you want, while staying within your budget.

1. Vinyl Siding
2. Fiber Cement Siding
3. Aluminum Siding
4. Natural Wood Siding
5. Engineered Wood Siding
6. Brick Siding
7. Brick Veneer Siding
8. Genuine Stone Siding
9. Stone Veneer Siding
10. Stucco Siding

Did you know? Most other online estimates of house siding costs are unrealistically low. Many other resources take the cost of the basic material and add the “base” installation costs to reach their total. — This approach fails to consider accessories like trim, supplies and fasteners that can add $1.50 to $2.50 per square foot.

Vinyl Siding

Vinyl siding is made from polyvinyl chloride, or PVC, a plastic. It is blended with pigment to give the siding color. Acrylics are added for strength and fade protection.

The material is extruded into panels. Most panels are textured like rough-hewn wood siding, but smooth panels are produced too.

What we like:

Vinyl siding is known for its relatively low cost and durability. — That combination produces good value. The material can easily last 30 to 40 years, depending on the quality and thickness of panels.

Vinyl offers excellent styles and color options:

Horizontal vinyl siding is made to look like wood boards from 3” to 8” wide in Dutch lap, beaded and clapboard styles.

Vertical panels are produced in board & batten and flat styles.

Architectural panels are formed like wood shingle and shake siding. Most products are offered in colors from white to deep browns and dark grays.

Vinyl siding is light and easy to install. — This helps cut down costs when hiring a professional and makes a DIY option more viable for handy homeowners.

Maintenance is minimal: Lightly power wash it to remove dust and dirt.

What we don’t like:

Vinyl lacks the authenticity of wood: In neighborhoods where homes are sided with natural wood, stone and brick veneer, vinyl often looks inferior.

Vinyl isn’t as eco-friendly as metal: While vinyl siding can be recycled, most of it ends up in landfills.

Warping, cracking and water penetration are frequent problems with bad installation.

Cost:

The installed cost of basic vinyl siding is $5.50 to $8.50 per square foot when horizontal and vertical panels are used.

Architectural vinyl siding panels with a layer of insulation will cost $2.00 to $4.00 more per square foot, depending the profile, with the total installed cost of $7.50 to $12.50 per sq.ft.

Cost factors are the quality of the siding material, insulation and trim details, and the complexity of the house on which it is being installed.

ROI (Value Recouped at Resale):

Vinyl siding has a recouped value of about 78% to 80% at resale. The ROI is the percentage of the cost homeowners recoup when selling their home while the siding looks new and is in good condition.

What ROI doesn’t necessarily capture are the intangibles such as the enjoyment value, improved energy efficiency with insulated siding panels, and the additional level of protection for your home from elements such as wind driven rain.

Did you know? Vinyl siding is the most common house siding in the US and Canada. It accounts for nearly 30% of all siding jobs. However, vinyl’s market share is slipping as other siding materials, such as fiber cement and wood composite gain popularity with homeowners wanting a finer and better value siding options.


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