Best way to finance a new roof?

[lauren170]

Just got our first quote and it's $36k. We probably have $10k we can pay in cash, but will have to finance the rest. We have some stock we can cash in next Feb (can't really predict what it will sell for), but probably should get the roof before this winter.

Would a fixed home equity loan make the most sense? If so where's the best place to shop rates? Not really seeing them via google search.

[Deleted]

That seems really high. Do you have a ginormous roof? That said, I'd start with your current bank regarding a HELOC. You can also look at Bankrate for an idea of the current rates.

[madringal]

I agree that seems really expensive. My aunt just had the roof replaced on her 6k sq ft home and it cost 25k. Also, my chance your roof replacement could be covered by your insurance?

[onomatopoeia]

36K for a new roof? I agree that seems very high.
We just did a personal loan through our bank when we got our new roof. It was easy to open and we got a great rate. So that might be worth checking out.

[jlt19]

Yikes. That's a lot! Ours was around 10,000 for architectural shingles and we have a typical two story, 2,000 sq ft home. I didn't even realize we had any damage but others in the neighborhood were getting new roofs so we called the insurance company. We had had a few storms within the last month or so and picked a date. They came out and we got a new roof. May be worth it to try?

[tealblue]

Yikes!

I would definitely get a few quotes. We paid $18k earlier this year. Our house is approx 2200 sq ft, but we have lots of peaks and ridges and a few chimneys to flash around. They also had to rip off the old roof (maybe 2 layers) and replace some boards under that were damaged.

As far as how to finance- we we refinancing to a 15 year mortgage at the same time. We decided to do a cash out refi. You could also look into a HEL. That would give you a fixed payment for a period of time. I would look into credit unions or local banks.

[babsbunny]

Texas, 15k. Got it covered by insurance for a hail storm 6 months ago (we were out of town that day). One story, 2k sq ft. Same story, though cheaper, 12 yrs ago. I vote you get more quotes. Good luck.

[FishChicks]

I agree with others that this seems high. We have a very complex roof and our first quote, from a seemingly reasonable contractor we were already working with, came in over $45k. Two additional quotes were around 30k.

I think home equity loans are wise given the current climate/interest rates. It's been a while since I looked there, but the mortgage professor site might have HELOC rates.

[icedcoffee]

That’s high. Definitely get more quotes. We paid like $12k for a new roof including 2 new skylights in HCOL area.

[ohgillian]

Depending on how long you need to finance it, I once did a 0% interest for a year credit card for a large home project when we were cash short. But I knew we would pay it off before the interest kicked in; this isn't a good approach for everyone.

[Cappy]

While I'd get another quote or two, I can also see how it might just cost a lot due to your home. Ours neighbor's roof + gutters were 30k. They have a custom home with both steep pitch and lots of rooflines. Those dormers and complicated rooflines mean more cut waste on the shingles. Our home, similar size (5000 sf house, 40 square of shingles) and steep but way less complicated roofline, was just quoted at 21k. We are in a LCOL too. 

If you have solid cash flow I like the PP suggestion of a credit card, but only if you are good with discipline and know you can easily pay off before it expires and have a backup in case you were to lose cashflow levels during that time.

If not that, then maybe the HELOC option and payoff when you feel okay cashing out the stock.

The only other option to consider is if you had a high % interest rate and a cash out refi made sense that could be a path but I'm guessing the #s don't make sense on it for you.

I'd also get a second opinion on how dire the roof truly is. Could you save up the cash in another year and if so, would the roof wait? AND during that time, how likely is it that you could have a storm event before hand? When we bought we knew our roof was 22 years into a 25 year roof and we were just trying to save up $ to replace but at 20k it was gonna hurt. Thankfully our our finger crossing got us 3 hail storms this summer and insurance is paying the big money before we had to.

[ellipses84]

Definitely get at least 3 estimates from different companies. If they are drastically different compare why. Sometimes the high one my have “extras” or upgrades so you should question them on if there is any way they feel the cost should be reduced, ie. Mid grade materials vs high end. A low bid could be missing something, be a smaller company with less experience, etc. I’d all the bids are within a couple thousand of each other, it’s probably an accurate price. If they are all wildly different that’s a warning sign and I’d probably get a 4th, go with the middle one or go with your gut about what company will be the most qualified and not rip you off. Also ask in your neighborhood groups for recs and if anyone will share how much they paid/what size their house is.

[imojoebunny]

Wow! That is really expensive for a roof. Is it a flat roof? I have never paid more than $8K MCOL area, but in more expensive parts of town, I have had at least 10 roof jobs (multiple houses, trees hate me), granted that is for about 1200-1400 square feet of cover, so if you have a 4000 square foot ranch that needs all the decking replaced and 3 layers of shingles removed, maybe. Flat roofs are the devil, so if you have that, all I can say is bless your heart. I would do a HELOC, after I got 4 more quotes.

[cosmowife]

Sept 19, 2020 9:28:29 GMT -5 imojoebunny said:

Wow! That is really expensive for a roof. Is it a flat roof? I have never paid more than $8K MCOL area, but in more expensive parts of town, I have had at least 10 roof jobs (multiple houses, trees hate me), granted that is for about 1200-1400 square feet of cover, so if you have a 4000 square foot ranch that needs all the decking replaced and 3 layers of shingles removed, maybe. Flat roofs are the devil, so if you have that, all I can say is bless your heart. I would do a HELOC, after I got 4 more quotes.

This is me. Our roof is flat, and our ranch is about that size with several feet of overhang around the entire perimeter, giving us a roof of 5500 sf or more. I fully expect a $40k bill when we have to replace so I’m probably the only one in this thread who didn’t balk at that quote!

[gaudi]

We had our roof replaced earlier this year and it was 36k with all new gutters for a 3,800 sq ft. two story house with multiple steep roof lines. We got 3 quotes and they were all within 1k of each other. None of our decking needed to be replaced but did use a few of the upgraded options because that's what we were replacing.

Ours was covered by insurance because of a hail storm, so we were only out of pocket for our deductible. Our roofing company was a subsidiary of a larger GC company, so they offered financing options. I don't know anyone who has paid out of pocket to replace a roof but I'm in North Texas where a single spring hailstorm can cause enough to destroy a roof. Our previous roof was a 50 year shingle and it lasted 9 years.

[blissann]

How big is the house? Seriously, that's a HUGE roof.



Do you have any equity in the flats you're renting out, some you could tap into if you do need to remortgage? I think you'll struggle to get a loan that size in the current market unless it's secured anyway, hence thinking down the mortgae route (even a smaller second one that allows you to pay off extra).

[thatgirl2478]

get a couple estimates - that seems high. unless you're going for a special material like full metal, slate, or tile...

we paid $9k for a new 50yr shingle roof (for a 1350 sqft 2 story + 2car garage house) in IL.