I recently bought my home in April, and I'm really happy with it! I'm wondering if I should start getting quotes for a new roof and new siding since my roof is 25 years old, and I want to switch from cedar shingles to vinyl siding. I'm also curious about how people typically pay for these big projects. Are most folks financing the costs, or do they just save money over time?
2 Answers
In general, it's best to avoid financing for known upcoming expenses like a roof replacement. A common recommendation is to save between 1-4% of your home’s value each month in a fund specifically for these kinds of big repairs. If you have a modest house, aiming for about 2% is a good target. For my roof, which is also getting older, I save around 1.5% and only use that fund for replacing major systems like the AC or furnace, while regular repairs come from my normal savings. Keep in mind, with your roof being 25 years old, you might run into issues with insurance down the line, and changing your siding should ideally be viewed as a luxury renovation that doesn’t need to be financed.
It's definitely smart to start getting estimates now, even if you plan to wait a couple of years. Replacing a roof and siding is a big investment, and prices can vary a lot depending on materials and contractors. For payment options, many people choose to either save up like you are, tap into home equity or a HELOC, or utilize contractor financing. Some contractors offer short-term 0% financing promotions, while others have longer-term options with interest. If you have time to save, that's usually your best bet, but it’s good to know what financing options are available too.