These questions work with any lender — a credit union, a bank, an online lender, or a contractor's financing partner. We're deliberately not recommending a specific lender or quoting rates; this is general education so you can evaluate whatever offer lands in front of you.
The Seven Questions
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What is the APR, not just the interest rate?
The interest rate covers the principal only. The APR includes most lender fees, which makes it the number that lets you compare two offers honestly.
A 7% loan with a 5% origination fee can cost more than a 9% loan with no fees. If a lender will only discuss "the rate," that's worth noticing.
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What is the total of payments over the full term?
Payment × months. This single figure is the one that tends to change people's minds, because stretching a roof over a long term makes the monthly number comfortable while quietly adding thousands in interest.
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Is this loan secured by my home?
Home equity loans and HELOCs are secured — the house is collateral, rates are usually lower, and default risk is severe. Personal loans are typically unsecured, cost more in interest, and don't put the property directly at stake.
Some contractor financing is secured by a lien on the property. You should never have to guess which type you're signing.
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Is there a prepayment penalty?
Critical if you expect an insurance payout, a tax refund, or a bonus that could clear the balance early. Get the answer in writing — a penalty can erase the benefit of paying ahead.
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What fees are rolled into the amount financed?
Origination, application, processing, and dealer or contractor participation fees may be financed rather than paid up front, meaning you pay interest on them for the life of the loan. Ask for an itemized list.
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If this is a promotional offer, what happens when the promo ends?
"No interest for 12 months" can mean deferred interest — if any balance remains at the end, interest may be charged retroactively on the original amount from day one. Ask specifically: is interest waived or deferred? The difference can be thousands of dollars.
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What happens if I sell the house before it's paid off?
Secured loans and liens generally must be settled at closing. If you might move within the loan term, that changes which option makes sense.
Your three-day cancellation rights — two different rules
If the loan is secured by your primary residence (home equity loan, HELOC, or refinance), the federal Truth in Lending Act generally gives you three business days to rescind after signing, and the Consumer Financial Protection Bureau notes this can only be waived for a bona fide personal financial emergency, using your own written statement rather than a pre-printed form. This right does not apply to loans used to buy a home. Saturdays count as business days; Sundays and federal holidays do not.
If you signed the contract at your home rather than at the company's permanent place of business, the FTC's Cooling-Off Rule gives you until midnight of the third business day to cancel sales over $25. The contract must carry a bold-face notice of that right in at least 10-point type. Note that the rule does not cover sales made entirely online, by mail, or by phone.
Get It in Writing Before You Decide
A lender should be able to hand you the APR, total of payments, term, fee itemization, and prepayment terms on paper. If answers only ever arrive verbally, or the paperwork appears only at signing, slow down. Nothing about a roof requires signing the same day — even an active leak is better handled with a temporary emergency repair than a rushed financial commitment.
Where we stand on this
We don't originate loans and this page recommends no lender. Our interest is that you get an accurate number for the work itself — see the Roof Cost Guide — so that whatever you finance is the right scope, not an inflated one. And if insurance covers most of the job, financing may only need to bridge the deductible.