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Home Repair & Renovation Loans

How to Finance a New Roof

Installing New Roof

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. While older roofs are more likely to need work done on them, even newer roofs can require repairs due to weather damage.

Whether you need a new roof or a major roof repair, you’ll want to get it done as soon as possible before it causes further damage. When the roof over your head isn’t stable, the rest of your house and everything in it could be vulnerable.

But what if you don’t have the money on hand? How do you pay for it?

Some of your roof financing options might include credit cards, savings, home equity loans, or a personal loan. We’ll review how to pay for roof replacement, but first let’s look at the potential costs.

How much does roof replacement 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 factors, including where you live and the contractor you hire.

Other elements that could impact the cost of a new roof or roof repairs:

  • Size of your roof
  • Type of material (such as asphalt shingles, metal, slate, or 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, or chimneys

Contact three to five roofing contractors for a quote. You’ll want to know exactly how much roof financing you’ll need.

Evaluating contractors for roof replacement

While the estimates might be relatively close (typically within a couple of thousand dollars), there are other points to consider about contractors before you hire them:

  • Reputation, online reviews, and references
  • Experience and knowledge
  • Quality of material

Asking family, friends, and others you trust about any contractors they would recommend is a smart way to look for the right fit. Roof work is extensive and expensive, so you’ll want to feel secure with the people you hire.

Be careful of jumping on the cheapest quote. It’s not always your best option. If the contractor is using poor quality material, doesn’t have enough experience, or does subpar work, you won’t be getting your money’s worth.

How to pay for a new roof

As you secure an estimate and figure out who you want to hire, you’ll also want to work out how to pay for everything if you don’t have all the funds you need. Let’s review your options.

What’s the best way to get roof financing? How you pay for a new roof depends largely on your financial situation. Ideally, you’ll have enough money in savings to fund most or all of the project. If not, you’ll need to find supplements.

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 or a cash out refinance. With loan amounts ranging from $35,000 to $200,000 you could do additional, related renovation projects like updating your gutters or adding solar panels.

If the total cost is less than $35,000 or you need the money quickly, a personal loan may make sense because you can secure a competitive rate for the exact amount of money you need. Best yet, most people get a decision the same day and funds can be sent as soon as the next business day after acceptance.

The benefits of personal loans for roof financing

A personal loan can be an ideal way to secure the funds you need at a fixed rate. It’s also possible to get a better interest rate than you would with a credit card. A personal loan could be all the new roof financing you need, or you could choose another strategy, such as paying for part of the costs from savings and the rest with a roof loan.

This type of project can be costly, but it should also help you feel more secure in your property as well as your finances.

When you’re dealing with large expenses, it may feel like you’re taking a step backwards financially, but that’s not necessarily the case. You can build your savings back up, manage your expenses, and much more so that you have a sense of financial freedom.

Personal loans can help maintain that sense, whether you’re getting a loan for a new roof or if there are some other unexpected expenses you have to deal with.

Knowing exactly how much you’ll be paying every month for a personal loan can help take away the anxieties of the unexpected.

With Discover, you can find out how much you can borrow and estimate your payments with no impact on your credit. Get started today.Estimate Your Payments