Did you know there are over 10 million residential swimming pools in America? Swimming pool construction is a great way to entertain right at home.
However, most people can’t afford to pay for an in-ground pool all at once. Have you considered swimming pool financing but don’t know where to start?
The following guide will explore several pool finance options for you to choose from. Read on and learn how to qualify for pool financing and if it’s the right choice for you.
Refinancing
Refinancing involves changing out your existing mortgage with a new one. Most people refinance to obtain a reduced interest rate and lower their monthly payments.
You can sometimes get cashback after refinancing depending on the amount of home equity you have. In this case, you can use that cash for a pool installation or any other home improvement you’d like.
Just keep in mind that a new mortgage through refinancing is a secured loan. That means you could risk foreclosure if you don’t repay it.
Line of Credit
A home equity line of credit (HELOC) is another option for pool financing. It’s a revolving line of credit backed by your home’s equity. HELOC works similarly to a standard credit card.
You might be able to access enough credit to fund your pool if you’re approved. Then, pay back the money overtime on a billing schedule.
You only pay interest on what you borrow and it only takes a few weeks to get approval. But it’s a secure loan just like refinancing and you must make the payments or risk losing your home.
Home Equity Loan
Home equity loans are comparable to HELOCs because they’re also a second mortgage. But this loan type allows you to use your home’s value to borrow cash in a one-time lump sum.
They often have fixed interest rates which makes monthly payments easy to predict. Sometimes the interest on a home equity loan is tax-deductible.
Keep in mind that these loans often have high closing costs. Your house also acts as collateral so you must make the payments or lose your home.
Personal Loans
You can apply for an unsecured personal loan if you don’t want to use your home’s equity. Some banks and credit unions even refer to these loans as “pool loans”. You’ll get a lump sum to build your pool if approved.
It’s easy to apply and you’ll receive funds in a few weeks if not a few days. You won’t risk losing your home this way but expect to pay much higher rates.
Financing Swimming Pool Construction
Now you know about multiple ways to finance your swimming pool construction. Consider each method’s interest rates, payment process, risks, and timeframes. Each pool financing option has distinct benefits to accommodate any budget.
Remember this guide and fund the pool of your dreams without breaking the bank! Check out our blog’s finance section for more awesome tips and helpful information.
