Your home’s roof may not be something you think about often, but when something goes wrong it quickly becomes a top priority. And a very expensive one at that.
If you need a new roof or a major roof repair, you’ll probably want to take care of it quickly before it causes further damage.
But what if you don’t have the money on hand? How do you pay for it?
Some of your options might include credit cards, savings, financing through a contractor, home equity loans or a personal loan. We’ll talk more about which option might be right for you later in this article, but first let’s look at potential new roof costs.
How Much Does a New Roof Cost?
According to Houzz, the cost of installing or replacing a typical roof ranges from $5,200 to $10,900. Prices vary greatly based on a number of things, including where you live and the contractor you hire.
Other factors that impact the cost of a new roof might include:
- Size of your roof
- Type of material (such as asphalt shingles, metal, slate and wood)
- Number of layers (too many can make removal more difficult)
- Code requirements
- Any unique features of your roof, such as multiple skylights, plumbing pipes and chimneys
Cheaper Isn’t Always Better for a New Roof
If you have reason to believe it’s time for a new roof (or a repair), you can make a plan for moving forward in a financially responsible manner.
One thing you can do is contact three to five roofing contractors for a quote. While the estimates might be relatively close (typically within a couple of thousand dollars), you can consider other things such as:
- Reputation, online reviews and references
- Experience and knowledge
- Quality of material
It might sound like a good idea to go with the cheapest quote, until you realize that the contractor is using poor quality material, doesn’t have nearly as much experience as the others on your short list or has poor reviews.
Price is important, but the end result is what matters most.
Is a New Roof Really Necessary?
Replacing your roof may not be the most satisfying home improvement project, because you don’t get to enjoy it the same way you would an upgraded kitchen, luxurious bathroom, or new hardwood flooring.
Even so, you may consider taking this project off the back-burner. Here’s why: an old roof can’t protect your home as intended, which can lead to additional damage. Plus, depending on the design of your home, a new roof can actually give your home a facelift and make it look really nice.
For example, a leaking roof can cause damage to the wood underneath and to your home’s interior. Then, instead of simply replacing the roof, you have more trouble on your hands (which costs you more money).
How to Pay for a New Roof
The way you pay for a new roof depends largely on your financial situation.
If you have the money in an emergency account, it may make sense to pay in cash and move on.
If you don’t have enough cash on hand, you’ll want to look into other options.
A credit card may be the first thing you consider, but if you can’t pay it off in time you could end up with high interest debt on a revolving balance. Plus, you may not have enough available credit to fund the entire project.
Another option is a home equity loan, but this may require you to take out more than $35,000, and a roof project may not be quite that large.
If the project is less than $35,000 or you need the money quickly, a personal loan may make sense, as you can secure a competitive rate for the exact amount of money you require. Best yet, most people get a decision the same day and funds can be sent as soon as the next business day after acceptance.