Today we’re going to discuss financing. We get asked a lot, do we offer financing for your roofing or exterior projects? Well, absolutely. Today a roofing project, or even an exterior project can cost upwards of 20,000, sometimes more. 20,000 is a large check to write, and bigger than most people can afford.
So just like everything else, if you wanted to buy a new car, you would go to a place that offers financing. We offer that financing here. It makes payments very affordable, even on a regular unsecured construction loan, such as you would have for your roof or siding, which means that there would be no collateral.
Nothing that the bank could foreclose on or take away from you in the event that you were unable to make that payment. I’m in no way suggesting that you do that, but that’s what an unsecured loan is. An unsecured loan has no securement attached to it, which means the bank that’s offering the money really has no way of recouping that money in the event of a bankruptcy.
All that said, often an unsecured loan will have a higher interest rate than a home mortgage or even a boat loan. In the event that you were not going to make that payment, they would be able to take that back and recoup at least a portion of their money. So, what do those interest rates look like?
Well, actually, they’re reasonable, considering the temperature of the country right now. Our unsecured loans, if you have good credit, run about 9.9%, which is lower than the rate at your local bank, their interest rate would be slightly higher than that. You’re looking at around 12 percent on an unsecured loan.
Our APRs or interest rates are very feasible due to their basis in simple interest. So like I try to explain to my customers when they’re considering, should I finance this project? There are no early payoff penalties, which means you only use the financing that you actually use. So if you get a 10 year note, 120 months at 9 percent, and you pay it all off in one year, not only are there no extra fees because you paid it off early, but quite the opposite. You have only paid for the interest payments. For those 12 months. So whatever the interest portion of your loan was, times 12 with no additional interest paid, which is different from say a home loan, where a lot of that interest is front loaded.
As you pay your home loans off, notice the amortization chart for the first half of your payments, 15 years. It seems you’re only making payments towards the interest. You’re not even touching the capital. That’s not the case. Like I said, it’s very simple.
That applies for the end of the time that you’re using that interest. That’s all you pay. So it can be a very affordable way to do it. With these long payment options, like a 10 year note in the event that one month or two months, even if you were planning on paying it off in a year, let’s say something happened, which we all know, things happen, and you couldn’t make that big payment.
Well, you’ve got that nice low payment option for that month. Once you pay that off, there’s no penalties. So financial projects. Yes, we can, here at Bayfront Roofing and Construction. We have several loan options with zero down payments and we can easily get loans up to 100,000 for a residential project.
It is a third party. So you are applying for credit through a third party. When you use a credit card, you have to fill out an application, but in this instance, we usually get the answers for you the same day. Sometimes within the hour. We’ll let you know exactly what your payments are going to be and what you’re going to end up paying for your project.
So give us a call. Let’s discuss financing. Let’s see if we can’t go ahead and get that project that you’ve been wanting to do for years done. You can pay for it over time. If y’all have any questions about financing or a project that you’ve been considering, please do not hesitate. Give us a call at 361- 800-5991.
Ask to speak with me, Scott, I would love to have that conversation with you. You have a great day.
