How To Afford That Impending New Roof

Owning your own home can be one of life's greatest joys. It can also be one of the greatest expenses. Remodeling a kitchen will cost a minimum of $10k-$20k. Replacing the plumbing throughout your home is several thousands of dollars to start. With many more expenses, you may be most flabbergasted by the cost of a new roof. Re-roofing services are not cheap, but if you live in a house for a decade or more, it is an inevitable cost related to owning a home. Here is how you can afford that impending new roof.

Buy Your Home on the "10-10-10" Plan

This is not a new approach or financial support program. Instead, it is a preparatory approach to home ownership. When you have not purchased a home yet, or you are planning to purchase a second home, follow these rules:

  1. Have 10 percent to put down on the home so that you can start building equity in the house right away, and not ten years from now after you have paid off ten years of interest on your mortgage.
  2. Have 10 percent of the home's value tucked away for repairs. When you need a new roof or you need new plumbing, you tap the savings account that has been holding onto this 10 percent.
  3. Put 10 percent of your monthly income into the account you created for repairs. This guarantees that you will always have enough cash on hand for emergency home repairs and major expenses, like a new roof.

This may be tricky to do at first, but you will definitely appreciate the hard work and effort you have made when you can freely pay for a new roof in full.

If You Do the 10-10-10 Plan, but You Need a New Roof Sooner

So, even the best-made plans do not always come to fruition as you expect. If you follow the 10-10-10 plan as outlined above, but you find that you need that new roof sooner than later, you are still in luck. That is because the 10 percent you put down on the house, combined with all of the mortgage payments you have made since, creates a sizable amount of equity. If you need to, you can borrow against that equity, and be able to pay for the roof in full, regardless of the cost.

Pay Part in Cash, and Finance the Rest

As much as possible, pay for a new roof in cash. Then you can finance the rest, if you need to, and not have to pay back too much. Some roofing contractors even work with, and offer, financing to help you get your new roof. 

For more information, go to websites like this one.