What would paying for it actually look like?
A roof is one of the few purchases most households make on borrowed money without comparing the borrowing. Put the offers you have been given side by side, and look at the total paid rather than the monthly payment.
The offers you are comparing
Replace these with the actual rates and terms you have been quoted. We do not supply rates, because we are not a lender and have no lending partners.
% APR
months
% APR
months
% APR
months
Amount financed
$16,000
What each option costs
| Offer | Monthly | Total interest | Total paid |
|---|---|---|---|
| Home equity line8.5% APR over 120 months | $198.38 | $7,805 | $23,805 |
| Contractor finance12.9% APR over 84 months | $290.20 | $8,377 | $24,377 |
| Personal loan15.9% APR over 60 months | $388.24 | $7,294 | $23,294Least total |
The lowest monthly payment is usually the most expensive option overall, because a longer term means more months of interest. Compare the total paid column, then decide what monthly figure you can live with.
Read this
These are arithmetic scenarios using rates and terms you enter. Home Cost Doctor is not a lender, does not broker finance, and has no lending partners. Nothing here is a loan offer or financial advice. Contractor-arranged finance frequently carries a dealer fee built into the project price - ask what the cash price is before comparing.
Three things worth knowing
- Ask for the cash price first. Contractor-arranged finance often carries a dealer fee built into the project price, so the “0% for 12 months” offer may already be priced in. You cannot compare finance without knowing the cash price it is being compared against.
- A promotional period is not the whole term. Deferred-interest products can charge back the full accrued interest if the balance is not cleared before the promotion ends. Ask specifically whether interest is deferred or waived — they are very different products.
- Secured borrowing is cheaper and riskier. A home equity product usually carries a lower rate than an unsecured personal loan, because your house is the collateral. That trade-off is yours to make, and it is worth making deliberately.