Strategy 102 of 107 · new for the five-year plan
Wind-mitigation and FORTIFIED roof discounts
What it is
When the roof needs replacing anyway, build it to the FORTIFIED standard or document wind-mitigation features.
Steps
- When the roof needs replacing anyway, build it to the FORTIFIED standard or document wind-mitigation features.
- Ask the insurer for the discount; some states require one.
- Send the premium saved to principal.
Repeat: Once, at roof replacement.
Measure: Monthly premium saved.
Try it in the calculator Enter its amount in "Monthly non-income amount to principal". Add a payoff goal of 5 years to see what is still needed.
Risks
- Upgrades cost more up front.
- Discounts differ by state and insurer.
Who it fits
Average household, Higher earners, Higher net worth, with assets, Business owners, Newlyweds, Married couples, College students, Single, Grandmas and grandpas (62 and over), No high school diploma, No college degree
Needs
Any homeowner with a mortgage.
How predictable
Depends on people or program rules (tenants, family, IRS records, lenders)
A worked example (hypothetical, not guaranteed)
Picture a hypothetical household (average household). They owe $300,000 at 6.5% with 30 years left. The required payment is $1,896 a month, and that payment, which comes from income, never changes in this example.
They follow the steps: when the roof needs replacing anyway, build it to the FORTIFIED standard or document wind-mitigation features.
Suppose it brings $150 a month on principal from this strategy, not from the paycheck. The loan would be paid off in 24 years 5 months instead of 30 years, saving about $83,919 in interest. To finish in five years, they would still need about $3,824 a month more from other strategies. That is why the five-year sequences stack several at once.
The amount above is chosen only to show the arithmetic. It is not an estimate of what this strategy will produce for anyone. Put real numbers from the fact finder into the calculator.
Sources and more information
- IBHS FORTIFIED: Financial incentives fortifiedhome.org
Where to get help
- CFPB: Find a HUD-approved housing counselor (free or low cost) consumerfinance.gov
- CFPB: Submit a complaint about a lender or servicer consumerfinance.gov
Related strategies
- 101. Get out of required flood insurance with a FEMA map amendment
- 103. Cancel add-on products you don't need
- 100. Free early childhood programs instead of paid daycare
- 104. Disabled veterans: a full or partial property tax exemption
- 99. Children's coverage through CHIP or Medicaid
- 105. On a five-year plan, put cash on principal instead of buying points