With the average swimming pool costing around $50,000, paying for it can be a challenge. However, there are various swimming pool financing options available. A pool can offer hours of fun and enjoyment to any family, and just as importantly can add value to your home, typically around 7 percent of your home’s existing value if you have an in ground pool constructed.
Swimming Pool Loans
Various banks and lenders offer loans specifically to finance the building of a pool on your property. These loans work much the same way as any other unsecured loan, with varying interest rates, amounts and terms, and as with other loans, you’ll get a better rate if you have a higher credit score. In general, a credit score of 670 or over is considered to be good. And as with any other financial product, it pays to shop around and compare lenders and rates, as well as have an accurate idea of the amount you need to borrow and how much you can afford to repay each month. Some pool loan companies stipulate that the money borrowed must only be used to finance a pool, while other companies are more flexible, and the funds can be used for whatever you want. Another advantage of this type of loan is that they often come with a low interest rate, although one drawback is that you may have to pay an origination fee.
Home Equity Line of Credit
One of the commonest swimming pool financing options is to take out a home equity loan or line of credit. Because you are using your home as collateral against the loan, you are at risk of losing your home if you don’t keep up with the loan repayments. However, a home equity loan also has several advantages, and like a pool loan, it pays to shop around for the best rate. A home equity line of credit allows you to withdraw funds as and when you need them, and the money can be used for other home improvements as well as to finance a pool. Loans come with a fixed rate, meaning you don’t have to worry about the amount of your monthly repayments increasing. And a poor credit score isn’t generally a disadvantage, as the loan is based on the value of your home rather than your credit. A home equity loan can be an affordable way to finance anything from home improvements to college tuition.
Other Options
Any unsecured loan can be used to finance a swimming pool, and it’s easy to apply and be approved online, with funds being available that same day in many cases. However, beware of high interest rates if you take out one of these loans, although they do offer flexibility in terms of available amounts and repayment terms. Of course, if you are in the position of having the money available to install your pool without having to borrow it, that’s the best option, although most of us aren’t in a position to do that.
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