Comparing Financing Costs for a Roof Replacement

comparing financing options

Roofs protect the greatest investment many people will ever have, so it’s crucial that your roof is sturdy and doing all it can to protect your home. And while many roofs last for over a decade or more, there may come a time when it needs to be replaced. We’ll break down popular financing options so you have a better understanding of the best choice for your replacement.

Comparing financing costs for the average roof replacement

The average cost of a roof replacement is about $6,600. The cost varies according to a number of factors (which we’ll break down below). The table highlights four of the most popular financing options for homeowners seeking a roof replacement.

The payments and final costs are calculated based on the average replacement cost for someone with an average credit score.

The better your credit score and the faster loans are paid off, the less the total amount paid will be.

Financing Option APR Term Monthly Payment Total Amount Paid
Personal Loan 14.56% 7 years $122 $10,289
Credit Card 16.88% 7 years $135 $11,328
HELOC 6.76% 30 years $42 $15,116
Home Equity Loan 6.82% 30 years $42 $15,193
Not all financing options are created equal and each caters to the economic circumstances of the individual homeowner(s).

Personal loans offer a great alternative to credit cards, as their interest rates are lower and they have shorter repayment periods. And while credit cards can be used to pay for a roof replacement, they’re best left for handling small repairs that can be paid off quickly. If not, interest rates could quickly spiral out of control.

Home equity loans are a great option if you’ve been in the home for a significant amount of time and have built up some solid equity. They’re ideal for large projects and have long payment plans. Home equity lines of credit are a lot like home equity loans, but they act more like a credit card instead of giving all the money upfront.


Varies factors influence the cost of a roof replacement

The average price of a new roof installation or full replacement ($6,6000) varies due to a number of factors, including but not limited to:

  • The roof’s size
  • Materials being installed
  • Type of application
  • The roof’s pitch
  • Where you live
  • How many layers of material are currently on the roof
  • The number of chimneys, skylights, and ventilation features
  • Code requirements of your neighborhood

There is a lot of time, coordination, and effort involved in a roof replacement, so approach the project with patience and an understanding that you may pay a bit more or a bit less for a new roof.

If you think your roof can hold out for several more years, roof repair might be the best route. A roof repair executed by a trained professional can add years of functionality to your roof. Plus, a repair is much more affordable—usually just a few hundred bucks, if that.

If you’re on the fence about deciding whether to repair or replace, consider the following:

If the roof is near the end of its recommended service life...

  • Roofs generally last for 20 to 25 years if maintained properly. If your roof is getting up there in age, have it inspected before deciding to completely replace it. You may find out it has a number of serviceable years left to give.

If you notice pervasive leaking...

  • If you’re experiencing extensive leaks, the roof should probably be replaced rather than trying to patch each individual leak.

If you want to improve your curb appeal or sell the home...

  • A new roof adds great aesthetic (and retail) value to the home. If you’re considering selling the home, but are worried buyers will be hesitant due to the roof’s age, it’s not a bad idea to replace it. You’ll likely recoup the cost when the home sells.

Pick a plan, pick a roofer

if not now when

Of course, the best financing option for a roof replacement is saving enough money to pay for the entire project at once.

You’ll avoid high-interest rates, monthly payments, and piles of paperwork. But seeing as some replacements need to happen ASAP and not all homeowners have a few thousand dollars stashed away for a brand new roof, knowing there are reasonable financing options out there makes the process less daunting.

Once you've settled on the right financing option, it's time to look for an experienced roofing contractor. Hometown Roofing Contractors makes it easy to match homeowners with qualified professionals. You can see what other customers have to say about their experiences, request multiple quotes, and find the right roofer for your needs.

Find a qualified roofing contractor near you