Salt water pools are becoming increasingly popular as backyard swimming pools. If you’re considering installing…
Pool Financing 101
If you’re in the market for an inground pool, you’re probably crunching the numbers. We’ve put together some pool financing tips to help you figure out how much pool you can afford, and how to pay for it.
You may want to check out our blog on setting a budget for your inground pool. Knowing what you want in the way of the type of pool and amenities will help you determine what your financing amount needs to be.
Ways to Finance Your Inground Pool Cost
There are several ways to finance your inground pool cost. Which one you choose depends on your credit rating and your personal preference. The first two options use your home as collateral, while the third is an unsecured loan.
Home Equity Loan
Most of us have heard of a home equity loan. Also known as a “second mortgage,” a home equity loan gives you one lump sum based on your home equity. You have a fixed interest rate and in most cases, you have to pay the loan back in 10 to 15 years. Interest rates may be lower than an unsecured, personal loan. You will have to pay interest on the entire lump sum. The good news is that interest may be tax-deductible, if you use the loan solely to make home improvements.
Home Equity Line of Credit (HELOC)
A home equity line of credit (HELOC) is a revolving line of credit. This means you can borrow smaller sums of money, as you need it. You’ll use a special set of checks or a HELOC credit card. You use it as you need it – to pay an initial deposit, installation costs on the schedule you set with your inground pool contractor, payments for the pool landscaping, etc. This limits the amount of interest that accrues. You also only need to make the minimum payments each month, like you would with a credit card. Of course, you can always pay more than the minimum. HELOCs start with a variable interest rate, but you can eventually convert that to a fixed rate.
Unsecured Pool Loans
An unsecured pool loan means you don’t have to secure the loan with any collateral (such as your home) to get the loan. It’s essentially a personal loan. An unsecured loan is riskier for a financial institution, so they may charge you a higher interest rate. You may also have a shorter amount of time to pay the loan back. But this type of loan also means you don’t have to worry about losing your home if you fail to make payments.
Woodfield Outdoors Offers Inground Pool Financing
When you decide to hire Woodfield Outdoors to install your inground pool and associated outdoor living areas, you have the advantage of obtaining pool financing with one of our trusted partners. We work with HFS Financial and Lyon Financial.