Roof Financing (Podcast)

Roof Financing (Podcast)

In this episode, John Maher interviews Brett Rogenski, general manager of Master Roofers, a trusted roofing company serving New Hampshire for over 80 years. They discuss the various financing options available for homeowners needing a new roof, including 0% interest plans, mid-term loans, and long-term financing. Brett highlights the flexibility of these plans, allowing homeowners to choose the best option for their financial situation. He also explains how Master Roofers helps customers navigate the financing process, offering quick approval and no prepayment penalties, ensuring the roofing project moves forward seamlessly.

John Maher: Hi, I'm John Maher, and I'm here today with Brett Rogenski, general manager of Master Roofers, the most trusted roofing company in New Hampshire for over 80 years. Today we're talking about roof financing. Welcome, Brett.

Brett Rogenski: Hey, thank you, John. Appreciate it.

What are the Most Common Financing Options for New Roofs?

Maher: Sure. So Brett, what are some of the most common financing options that are available for homeowners who need a new roof?

Rogenski: Sure. I would tell you that, well, again, we've been doing this a long time here. We've been doing this since 1942. Everyone has different needs and we understand that. We certainly have some customers who just like to write a check for their new roof, and that's wonderful. That's fine. We have other folks that maybe for various reasons want to use something like a credit card because they're accumulating miles. Those are usually folks who could have written a check, but they run it through their American Express, get a bunch of air reward miles and then write a check to American Express. It sounds great to us.

But a lot of folks, they're not budgeting to replace a roof. Sometimes you can see it coming and you do that. A lot of times people are reacting to all of a sudden the end came relatively quickly with a roof. So we offer several different flexible financing options for people through a couple of different lenders. So there's a lot of times, I would tell you there's a couple of program that are the most popular. We have, for instance, a couple of options on 0% interest financing, and those are usually relatively short-term options, maybe one year, 0%, no monthly minimum payment.

That allows people who are choosing to do a roof now, either because they have to or they want to, to sort out how they want to handle that financially in the meantime without accruing interest. And that's so much of a better choice than if your other option was to put this on a credit card or something like that, right? So zero interest versus credit card interest in the mid-20s.

So, we offer zero interest options through our lenders. The other option that tends to be quite popular is something along like a five-year option. So, almost like you were purchasing a lot of people finance vehicles for over the period of time like that. So being able to, at a relatively low interest rate, very much in the single digits, being able to finance that roof out over a reasonable period, 60 months or something like that. And instead of making a big capital investment, turning it into a monthly payment. We also have options for loans that are, gosh, up to 180 months.

And the neat part about all the loans that we offer is none of them come with prepayment penalties. So, sometimes maybe something catastrophic happens and someone needs to re-roof, and this just totally wasn't in the budget. I didn't know I was going to have to do this. I didn't have money set aside for it. We have people who take those longer 120 or 180 month finance terms frequently. Again, the interest rates are actually surprisingly reasonable. And they'll take that to have a very low monthly payment while they figure out, do I want to take out maybe a home equity line of credit or am I drawing money from another source of funds, but it's going to take me a little while to do that?

They'll take out that long-term, very low payment, and it gives them time to sort out whatever else they want to do in terms of their finances, and then they simply pay it off early and with no prepayment penalty. It makes it extremely affordable. So I would tell you the three most popular would be 0% financing because hey, 0% leave your money in the bank, let it work for you and use my money. Use our bank's money at a low rate. Some folks looking at a 60 month or 36 month, those mid-range options. And then a lot of folks take that long-term, one 20 or 180, mostly just the lock in on a very low payment while they figure out what they want to do. And frequently people pay those off well ahead of time once they kind of sort out what their financial situation was. And a lot of times those folks are reacting to something that was maybe unexpected.

Does Master Roofers Help Choose Financing Options?

Maher: Right. Does Master Roofers help homeowners to determine what type of financing might work best for them? Or are they kind of on their own to talk to their bank and figure it out?

Rogenski: Yeah, no, we actually provide financing through a couple of different options. And when you're sitting with one of our roofing advisors, he can talk to you and model out for you what those payments would be. And you can actually, right there sitting with him either on an iPhone or on a tablet that we have him with, you can actually complete the application and receive approval literally in... it might take you a minute to fill out the form and another minute at the most to receive the approval. So, you can sit there, model them out, what are my options? Geez, I think that choice C is what's best for me and my family. And then simply, you can literally apply while you're sitting right there with the roofing advisor and do it right then.

If not, we can certainly email you the link and you complete it that way. It still only takes a minute or two, but it can be as fast as, "I would like to choose option C." Great. You're standing right there with the roofing advisor. Let's take care of this now. And 30 seconds after you hit send, you receive your approval, which allows us all to move forward rapidly for you.

What are the Pros and Cons of Financing a New Roof?

Maher: Right. What are some of maybe the potential benefits and drawbacks of different financing options like loans or home equity lines of credits, like you mentioned before?

Rogenski: Yeah. Yeah. When you're talking about a loan, for instance through one of our lenders, one of the biggest advantages is speed. Reasonable interest rates, and then speed. Again, as I mentioned, you can be there with my roofing advisor and literally two minutes after you make a decision on what you'd like, know that you're approved. Home equity lines of credit usually take a bit longer. So if you want to go to your existing bank, let's say they're going to want to do an appraisal on the home because they're going to want to know what sort of equity you actually have there. So that's a little longer road.

A lot of times what people do is they use the flexible financing that we offer to secure the project, and if they later say, "Hey, I want to turn this into a home equity loan," they can simply go get that home equity loan and simply pay off the personal loan that they've taken out through our lender. So, that gives them the best of both worlds in that they can deal with the project rapidly, but then also return that with... if there's some advantages for them with a home equity line of credit, go ahead and do that. But certainly we also work with a lot of the local major banks. It's just for home equity lines of credit. It's just a little longer process for the homeowner.

What Factor Should a Homeowner Consider When Financing a New Roof?

Maher: Right. Are there some factors that homeowners should consider when they're comparing financing offers from different lenders?

Rogenski: Sure. Yeah. They want to look at obviously the interest rate and the payment factor that works best for them. Are they offering you one-size-fits-all or do they have multiple plans that they can offer you? Because some folks are about, "Hey, I'm looking for the lowest interest rate." Other folks are looking for a particular type of payment, at least initially. So being able to offer you a plan that meets that your family's personal financial needs, whatever those are, is important. So yeah, any good company should be able to offer you multiple financing options to do that there. And then at that point, it's a personal decision, is this about interest rate? Is this about what is the payment number? But if someone's just offering you one type of financing and telling you, "Hey, it's one-size-fits-all," I don't think that's a particularly good service.

Are There Government Programs to Help Finance a Roof?

Maher: Right. And then finally, are there any government programs or incentives available to help homeowners to finance things like a roofing project?

Rogenski: Yeah, there are some incentives that are out there if it's being done in conjunction with, for instance, solar. So, a lot of times that's actually done through the solar provider as well. So we partner with multiple solar providers. We also have a company that we partner with directly that people are looking for a roof and are asking about solar, we can provide them with a proven partner as well. But a lot of times people have contracted for solar and the solar company finds out that the roof has a problem, some of that can be tied together in terms of tax incentives and that sort of thing.

One thing that I would also tell you is that skylights have a solar incentive tied to them as well. So for instance, if you were to get a Velux Skylight that has a solar driven shade in it, so it's a self-contained unit in there that is solar-powered. You're not wiring this thing to your house or anything like that. Solar shade, and they can also buy solar power be made to open and close, et cetera.

Not only is there a rebate of a tax credit, excuse me, of to 30% available for the Skylight itself, but it's also the roofing around that skylight. So what had to, did this entire section have to be replaced to accommodate replacing these three skylights with these solar skylights? If the answer is yes, all that is then eligible for up to a 30% tax credit on that work, the roofing as well as the Skylight. So, I would tell you, if you have old skylights and you're thinking about replacing them, I would absolutely look at what the Velux solar Skylights, because the government will literally help you with by way of a very significant tax credit. And that then can then encompass any roofing, flashing, et cetera around those Skylights that needs to occur to make it safe and watertight.

Can a Roofer Help with Government Incentives?

Maher: So, what's the best way for a homeowner to figure all this out, because that sounds like a lot to research? Should they just talk to a reputable company like yourselves, like Master Roofers and you can walk them through all of these different options?

Rogenski: Yeah, I would tell you there's a lot of information that's out there, for instance, through the Velux website and stuff, but you're having to navigate that yourself. But yeah, I would tell you if you work with a reputable roofing company that's also knowledgeable in skylights and solar and stuff, that they can guide you through that. So for instance, the expectation here is if you're sitting with one of our advisors and you have an interest in solar skylights and that sort of thing, he's going to be very well-versed to talk and explain that through to you. We then also, once the work is done, provide you with all the documentation you need to then later file for that solar tax credit as well.

So yeah, probably the best step for most homeowners, because they're not professional solar skylight quote getters, is to have a knowledgeable roofing and skylight advisor come out, visit with you, talk with you about your options, and then they can then model out and tell you what the requirements are, and then model out what those projected savings are for you. And then of course you work with your tax advisor to file for them.

Maher: All right, well that's really great information, Brett. Thanks again for speaking with me today.

Rogenski: Thank you so much for having me, John.

More Information About Master Roofers

Maher: And for more information, you can visit the website at masterroofers.com or call 603-623-4973.