May 24, 2021

How to pay for a new Roof?

It’s easy to think a roof replacement is out of the budget. This article shares tips, ideas, and options on how to pay for a new roof and save money.


Installing a New roof is one of the most important home investments you could make

Things are expensive – and that includes roofing repairs and replacements. With an average price tag of a roof in Michigan ranging from $6,550 – $11,900, it’s easy to think a roof replacement is out of the budget. However, there are many ways in which you can save or use financing to cover the cost of replacing your home’s roof. Just take a look below to see your options for how to pay for a new roof.

You can use this ROOFING CALCULATOR to get a close estimate on the cost of your roof replacement.

If at any point you would like to seek our advice or services, please, call us directly at 248-462-0224.

Roofing Cost Calculator


Factors that affect roof replacement cost

When it comes to installing a new roof, many factors affect the price you’ll pay.

Time of year: Late summer through the fall is the busiest time of year for most roofing companies, according to Angie’s List. If you want your roof installed during that time frame, you will likely pay extra. By contrast, you might get a lower price by opting for winter or early spring.

Size of your home: Roofers usually base the price on the square footage of your roof, according to the Roofing Calculator. The larger the house, the more you’ll pay.

Materials: If you opt for an asphalt roof, you’ll pay much less than if you went with metal or wood.

Labor: Each roofing company charges different hourly rates for labor, and the rates can vary widely.

Disposal: The roofer also will charge a disposal fee to rent or supply a dumpster for the old roof and supplies.

How to save on a new roof

To minimize how much you need to spend, follow these tips to save money on your roof replacement.

Shop around: Before moving forward with a roofing company, make sure you get quotes from multiple businesses. The cost can vary widely from company to company, and you might find a cheaper roofing company that delivers high-quality results. If you’re not sure where to find reputable companies, start your search on Angie’s List.

Consider cheaper materials: Although a metal roof might look nice, it’s much more expensive than some other materials. If possible, opting for an asphalt roof can help you save money.

The time is right: If your roof doesn’t need to be replaced right away, you could save a significant amount of cash by waiting until the winter to replace it.

Always Save, First

Before going straight to the bank and taking out a loan, make sure you do all you can to limit how much money you borrow.

6 ways to pay for a new roof

Although replacing a roof can be expensive, there are ways to finance the project to make it more affordable. Here are five of the most common options.

1. Insurance coverage

If you have homeowners insurance, you might be able to use your policy to cover the cost of a new roof. According to Esurance, many insurance policies will cover roof repairs or replacement if damaged by a storm, fire, or theft. If your roof degraded because of age or lack of maintenance, however, your insurance company won’t cover its replacement or repair.

Contact your insurance agent to discuss your policy and the needed repairs or replacement to see if the insurance will pay for it.

2. Roofing company payment plans

Some roofers offer payment plans to help make the roof replacement cost more affordable. With this option, you can spread out your payments over the course of several months or even years. Most plans charge you interest, which can add to the total cost of your roof replacement, so make sure you’re comfortable with the interest rates and monthly payments.

Each roofer has its own plans, requirements, and interest rates, so contact your chosen roofing company to find out what’s available.

At Grennan Construction, we offer financing through Synchrony Bank for as low as $200 a month.

3. FHA Title I home and property improvement loan

If your roof needs major repairs or a replacement, one of the best ways to pay for it is with a Title I home and property improvement loan. The Federal Housing Administration (FHA) runs the Title I loan program and ensures the loans, thereby reducing the risk faced by lenders.

If you own a single-family home, you can borrow up to $25,000 under the Title I program and have up to 20 years to pay it off.

However, keep in mind that loans over $7,500 must be secured by either your mortgage or deed of trust on the property. If you fall behind on your payments, the lender can seize those assets.

Title I loans are offered by banks and credit unions. Each lender has its own requirements and interest rates. It’s a good idea to consult several financial institutions to ensure you get the best deal. Use the U.S. Department of Housing and Urban Development’s locator tool to find an approved Title I lender near you.

4. Home equity loan

If you have equity built up in your home, taking out a home equity loan can be a cost-effective option to pay for a new roof. You work with a bank or financial institution and use your home’s equity as collateral for the loan.

Your home’s equity is its current value minus the amount you owe on your mortgage. For example, if you have a $250,000 home and owe $180,000, your home equity is $70,000. According to the Federal Trade Commission, you can usually borrow up to 85% of your home’s equity. So, on home equity of $70,000, you could borrow up to $59,500.

However, there are some downsides to home equity loans. Because your home’s equity serves as your collateral, there are steep consequences if you fall behind on your payments. You could even lose your home. To minimize your risk, borrow as little as possible to cover the roof replacement cost and make sure you can afford the monthly payments.

5. Personal loan

If the above options don’t work for you, another way to pay for a new roof is to take out a personal loan. With a personal loan, you work with a bank, credit union, or other financial institution to borrow up to $100,000.

You usually don’t have to offer any form of collateral when taking out a personal loan, so you don’t have to put your home or other valuables at risk.

However, consider some of these drawbacks to personal loans:

Shorter loan terms: Personal loan terms tend to be shorter than other kinds of home improvement loans. For example, you can have up to 20 years to pay back a home equity loan, but most personal loans need to be repaid within two to five years. That means you’ll have higher monthly payments, which can stretch your budget.

Higher interest rates: Although you’ll see some personal loans with annual percentage rates (APRs) as low as 2.49%, lenders reserve those rates for borrowers with excellent credit scores and incomes. If your credit score is good or below, you could end up with a much higher rate. With bad credit, you could pay a rate that’s as high as 199.00% on your loan.

6. Cash 

The easiest and most cost-effective way to purchase a roof replacement is with cash. Unlike a loan, you won't have to maintain or prove that you have good credit to get approved. There is also no interest to pay. This is your best option if you have sufficient savings that aren't allocated for any expenses.

Homes are huge investments.



Pay off your roof with Synchrony Bank Loan

Don't let a small budget keep you from getting what you want or need

Synchrony provides you with promotional financing options for major
purchases, offering you a budget-friendly way to help expand your purchasing power
and convenience with:

A simple application process and fast credit decision

Unsecured, revolving credit lines

An open credit limit for future purchases

Promotional financing options

Convenient monthly payment options

Online account management

Residential roofing before new roof photo.


Residential roofing contractor complete new roof after photo



If you need a new roof, the Oakland County Roofing professionals at Grennan Construction can help. Our estimates are always free, and we offer financing through Synchrony for those who qualify.


1. Call Us To Schedule Your Free Estimate 248-462-0224
2. Review your Estimate and Schedule your project
3. Enjoys the beauty and security of your new roof

Are you still wondering how to pay for a new roof? If so, contact us to discuss the various options we offer.

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