Putting up a swimming pool in your backyard is a great way to boost both the value and desirability of your home. However, putting in a swimming pool is likely to be one of the costliest additions you make to your property. A swimming pool is an expensive amenity. You’re in luck, since there are a variety of pool financing options available to you that may help you meet this expenditure.
How Should One Go About Paying for One?
Swimming pools come in a dizzying array of shapes, sizes, materials, and designs. On average, the price of an in-ground plant is about $20,000, but that amount may easily rise to $100,000 or more in certain cases. You should go for the inground pool ideas there.
Get a loan to pay for the pool.
Taking out a loan is a frequent way to fund the purchase of a pool. It’s a kind of unsecured consumer credit that’s promoted by the lender specifically for the purpose of paying for the purchase and installation of a swimming pool.
Pool loans are available from any lender, including traditional banks, credit unions, and online money services. No matter which lender you choose with, you will get a lump sum that you may put into a pool and repay over time in fixed monthly amounts plus interest.
A home equity loan might help you pay for the installation of your pool.
Those who have built up substantial equity in their homes may want to consider a home equity loan because they typically offer lower interest rates than personal loans and allow the borrower to take out much larger loans than are available through traditional lending institutions. However, it’s crucial to remember that defaulting on a home equity loan might result in the loss of the house, so it’s not a move to be taken lightly.
You may get a loan against your home’s equity to pay for a pool.
Similar to a home equity loan, a home equity line of credit enables homeowners to tap into their homes’ built-up equity. Use of a home equity line of credit (HELOC) is similar to that of a credit card, except the HELOC is only effective for a certain time, known as the draw period. Variable interest rates are common with HELOCs, and repayment terms may be significantly more drawn out than with traditional home equity loans.
Don’t waste your pool contractor’s offered financing choices.
Some pool companies may provide their own in-house financing options to help homeowners afford the costs of pool construction. In most situations, cooperation with financial institutions is what makes such schemes viable. Contractor financing should be approached with care by homeowners due to the contractor’s potential conflict of interest in overseeing the loan application and terms. The contractor, however, handles both the application and the loan conditions, making contractor finance a potentially convenient option.
Conclusion
Some companies that make and sell pools also provide financing to customers. They may have access to external lending institutions and also be able to provide in-house financial alternatives. A loan secured from a manufacturer or dealer may provide a process that is equally streamlined to contractor financing. This is because the finance is wrapped up in the acquisition of the pool as a whole. The standard caveats are in effect, though.