Siding financing

Contractor-arranged financing is the one to scrutinize. Promotional rates are sometimes funded by a dealer fee that the contractor builds into the project price — meaning the "0% offer" is paid for by a higher price for the same job. The test is simple: ask each bidder for their cash price and their financed price. If they differ, you now know the real cost of the financing.

Compare on APR and total interest over the full term, never on monthly payment. A longer term always produces a smaller payment and a larger total cost. Also check for prepayment penalties, whether a promotional rate is deferred interest (which can be charged retroactively if you don't clear the balance in time), and whether the loan places a lien on your home.

PACE financing, available in some states, repays through your property tax bill and attaches to the property. That structure has real consequences at sale and refinance and has drawn consumer-protection scrutiny. If it's offered, get the terms in writing and talk to someone independent of the contractor before signing.

How to choose

Ask for the cash price

Every bidder, in writing. The gap between cash and financed price is what the financing actually costs you.

Compare APR, not payment

Monthly payment is a sales tool. APR and total interest over the term are the numbers that describe the deal.

Watch deferred interest

Some promotional plans charge all accrued interest retroactively if the balance isn't cleared in the promo window. Know the exact deadline.

Understand what secures the loan

Home equity products and PACE attach to your home. Personal loans generally don't. That difference matters if things go wrong.

Never finance a deposit you can't verify

Funds should release against milestones. Full prepayment before work starts is the classic setup for an abandoned job.

Sleep on it

High-pressure "today only" pricing on a five-figure job is a reason to decline, not to hurry.