While many homeowners usually decide to save pay for their pool out of their own money, some often choose alternative financing options instead. The average costs for in-ground swimming pools usually range between $20,000 to $30,000 depending on several factors including pool design, material type, amenities, and installation time. Luckily, third-party pool financing allows homeowners to have the pool of their dreams without having to wait several years or save up a lot of money.
Here are three of the most popular pool financing options for homeowners.
1. Personal Loan
Personal loans are one of the best options for financing your next swimming pool project. They are great options for people who have good credit and are looking for lower interest rates than they would get with a credit card. Personal loans are usually available as secured loans and unsecured loans for up to $50,000, and they offer fixed interest rates, fast application processing, and virtually no restrictions on how you can use the money.
2. Home Equity Loan
Home equity loans are another option for financing the in-ground swimming pool you’ve always dreamed of. A home equity loan is a secured loan provided to lenders by a bank or reputable financial institution in return for borrowed value against their home that’s used as collateral for the loan. Home equity loans offer most of the same benefits as personal loans such as fixed interest rates and fixed monthly payments, however, you may be able to borrow more money with a home equity loan than you would with a personal loan as the borrowed amount is protected by collateral (sometimes up to 90% of the home’s total equity).
3. Cash-Out Refinancing Loan
Cash-out refinancing loans work by refinancing your mortgage to more than what you currently owe as an outstanding balance. The difference between your old mortgage and your new mortgage can then be used to pay for your new in-ground swimming pool. This option can also help you save money in the future if you are able to refinance your new mortgage to a lower interest rate than you were paying on your old mortgage.
Contact us if you need advice on how to pay for your next in-ground swimming pool project.