A new roof costs $5,500–$12,500 — more than most households keep in savings. Compare roofing company financing, personal loans, HELOCs, and cash-out refinancing to find the cheapest way to pay.
At $5,500–$12,500 for an average replacement — and well over $20,000 for metal or tile — a new roof is one of the larger bills a homeowner will face, and it usually arrives without warning. A storm, a sudden leak, or a contractor flagging advanced wear during an unrelated inspection rarely lines up with having that much sitting in a savings account.
That's why the large majority of roof replacements in the US are financed in some form, whether through the roofing company itself, a bank, or home equity. The option that's cheapest depends heavily on your credit, how much equity you have in your home, and how fast you need the work done.
Most established roofing contractors partner with a specialty lender (companies like GreenSky, Hearth, or Service Finance Company) to offer financing at the point of sale. You apply during your consultation, often get approved same-day, and the loan is unsecured — no lien on your home.
Rates run a wide range, roughly 6%–24% APR, depending on your credit score and the specific promotion running. Terms typically span 5–15 years. The convenience is real, but these loans often carry a "dealer fee" baked into the roofing company's price — ask directly whether the cash price and the financed price are the same number, since a gap between them is effectively a hidden financing cost.
If you have equity built up, a home equity loan or home equity line of credit (HELOC) typically offers the lowest rates available for a roof — often several points below an unsecured roofing loan, since your home secures the debt. Interest may also be tax-deductible when the funds go toward improving the home that secures the loan; confirm specifics with a tax professional.
The tradeoffs: approval takes longer (often 2–6 weeks, versus same-day for contractor financing), there are closing costs on a home equity loan, and your home is now collateral — missed payments carry more serious consequences than an unsecured personal loan.
An unsecured personal loan from a bank, credit union, or online lender (SoFi, LightStream, Marcus) works similarly to contractor financing but is arranged independently, which means you can shop rates before you ever talk to a roofer. Well-qualified borrowers (720+ credit score) can often land 7%–12% APR; weaker credit pushes well into the teens.
Credit unions in particular are worth checking first — their personal loan rates frequently undercut both big banks and roofing-company lenders for members with decent credit.
Rolling the cost into a refinance of your mortgage can make sense if current mortgage rates are at or below your existing rate, letting you tap equity without taking on a second loan or monthly payment. If rates have risen since your original mortgage, though, refinancing your entire balance to fund a roof usually costs more over time than a smaller, separate loan — run the numbers before assuming this is the cheap option.
Many roofing companies advertise "0% for 12 months" or similar promotions. These can be genuinely free money if you pay the full balance before the promotional period ends — but most are structured as deferred-interest loans, where missing the deadline by even one payment retroactively charges interest on the full original balance, not just what's left. See our full guide to how these loans actually work before signing one.
As a rule of thumb: if you have home equity and aren't in a rush, a HELOC or home equity loan is usually cheapest. If you need the roof fixed now and don't want to put your home up as collateral, compare a personal loan against the contractor's in-house financing — and always ask the contractor for the cash price so you can see exactly what financing costs you.
| Option | Typical APR | Speed | Best For |
|---|---|---|---|
| Roofing company financing | 6%–24% | Same-day | Fast approval, no equity needed |
| Home equity loan / HELOC | 7%–11% | 2–6 weeks | Homeowners with equity, lowest rate |
| Personal loan | 7%–20% | 1–3 days | Good credit, want to shop rates first |
| Cash-out refinance | Varies with mortgage rates | 3–6 weeks | Rates have dropped since your mortgage |
| 0% promotional | 0% if paid in full | Same-day | Can realistically pay off before deadline |