Maybe you’ve considered constructing a swimming pool in your backyard if you have images of children playing in the water and adults relaxing on a raft while drinking margaritas. You may be wondering how you’ll ever pay for an in-ground pool or hot tub that costs thousands of dollars.
You can finance your pool in a variety of ways. But, swimming pool loans aren’t cheap and can put you in a bind financially. Make an informed decision about whether or not to borrow money for your pool by learning about all the available payment options. This will also help you choose the best loan for your needs. Listed below are five essential facts about pool ownership and pool financing that you should be aware of before you commit to a pool loan.
You Can Choose From a Variety of Financing Alternatives
You should be familiar with the many financing options available for a pool before deciding which one is right for you. For that the pool financing calculator works perfect.
Private Loans That Do Not Require Collateral
Unsecured personal loans, which are available from many sources including traditional banks and credit unions, internet lenders, and peer-to-peer platforms, do not need borrowers to put up any collateral. However, interest rates on secured loans, like home equity loans, are often lower than those on unsecured loans. Payback periods for personal loans typically range from twelve to eighty-four months, so you’ll have a good idea of when you can expect to pay off your pool.
Home Equity Lines Of Credit (Helocs)
Home equity can be used as security for a loan or HELOC. Because your home is collateral, a home equity loan may have lower interest rates than other unsecured loans. If you itemize your taxes, you may be eligible to deduct home equity loan interest when you make improvements to the collateral dwelling. The main negative is that not repaying the loan will put your house in foreclosure. A home equity loan requires equity in your property and has a 10- to 15-year repayment duration, unlike a personal loan.
You can get financing from a pool dealer if you’re looking for one. Some pool dealers will even connect you with lenders. In most cases, though, dealer-arranged financing will cost more than other available choices.
Financing a Pool Can Be Quite Pricey
Installing a swimming pool is no small effort, and the final tally can range from several thousand to several hundred thousand dollars, depending on your specific needs, the size of your pool, and other customizations.
You will incur interest payments in addition to the principal amount if you take out a loan to pay for your pool, regardless of its cost. Your options for pool financing, as well as the lender you go with, will determine the interest rate. Several criteria, including as the lender, the length and nature of the loan, and your credit, determine the interest rate, which can range from as low as 5% APR for some loans to as high as 36% or more for others.
Conclusion
You get to decide if getting a swimming pool loan is the best course of action for you and your property. Now that you know more about pool loans and how to pay for a pool, compare loans to get the best one for your future poolside retreat.