How Does Pool Financing Work

How To Apply For A Sofi Loan

If you can meet the criteria , and you’re looking for perks in addition to a loan, this lender could be a good fit for you.

Applying at SoFi is straightforward and can be done on the lender’s website. You’ll start out by setting up an account and answering some basic information about your total debt, your education and your employment. The online approval is the first step before you complete a full application.

Here’s a breakdown of the process:

Best Financing Options For Swimming Pools

I always think a home equity line is your best option, said Behr, The lowest interest rate tends to be with a collateralized loan, Behr said to be wary of pool companies offering your attractive interest rates for personal unsecured loans. Its going to look attractive because theyre trying to sell you the pool, and they want to remove any barriers that you might have as a homeowner.

Its also wise to try and reduce your debt prior to taking out a large loan. In addition to the mortgage, do you have student loans, car loans, things like that, where maybe you need to prioritize other debt before you take on a new loan for the pool, explained Behr. Although there are several financing options available for swimming pools, the cost of getting your dream private pool shouldnt jeopardize your credit score and income.

How Do Sofi Personal Loans Work

Founded in 2011 by four former Stanford University college students, SoFi started out by focusing on refinancing student loans. But now it’s one of the largest online fintech lenders in the United States.

SoFi Loan Rates & Terms

SoFi may be the right lender for you if:

• You Need High Loan Amounts – Up to $100,000
• You Have A High Credit Score and Want Low Rates – 680+ and APR as low as 5.99%
• Your Income Is High – At least $50,000

The San Francisco-based digital financial company originally utilized an alumnus-funded lending model that connected students and recent graduates with alumni and investors. With this model, the investors received financial returns and borrowers obtained rates lower than the federal government offered.

Fast forward to 2018, and SoFi is a powerhouse in several financial sectors, including student loans, personal loans and, more recently, mortgages. The company has even started to offer wealth management and life insurance.

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What Is Considered Bad Credit When Looking For A Pool Loan

A credit score below 689 is considered bad to fair credit when looking for a pool loan. You will want to be in the good to excellent range before applying for a pool loan. Good credit is considered to be a FICO score 690 to 719 and excellent credit is considered to be a FICO score 720 to 850. While you may qualify with bad or fair credit, you are subject to unfavorable terms and high interest rates.

Cons Of A Personal Loan For Pool Financing

Cost is the big factor when comparing personal loans to other borrowing options.

While it may be easier and less expensive upfront to get an unsecured personal loan, interest rates may be higher for this type of loan than a loan that requires collateral. However, borrowers who have good credit and dont appear to be a risk to lenders still may be able to obtain loan terms that work for their needs.

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Other Considerations Before You Break Ground

In addition to the installation and maintenance costs of your pool, there are other financial obligations youll want to take into account as well.

You may also see expenses due to:

Your Homeowners Association If your HOA requires a permit for your pool installation, this will cost you additional money up front.

Fencing If you have little ones or animals at home, you may want to install a fence around your pool as an extra safety measure. Pool fences generally cost around $1,000.

Want an area of lounging poolside in the side? Then you may also want a deck. These generally cost between $3,000 and $12,000 depending on the size and materials you choose.

Water features Adding things like waterfalls, fountains, or water slides can all add money to your pool costs. Waterfalls alone cost $7,000 or more.

Taxes Your pool may increase your homes value. If it does, that means higher property taxes come January .

Insurance Because pools make your home riskier, from an insurance standpoint, your homeowners insurance premiums might increase once installation is complete.

Utility bills Youll likely see higher water and energy bills once your pool is installed particularly during the spring and summer seasons when its in high use.

Additionally, the location both of your house and where you plan to put the pool could impact your costs as well.

Home Equity Line Of Credit

A HELOC is secured by the value of your home. You can use a HELOC to pay for your pool and be charged a lower interest rate than you can get from many credit cards and personal loansonly paying interest on the money you withdraw. Also, the interest on your HELOC may be tax-deductible if you use it to upgrade your living space .

What to watch out for: Unlike credit cards, HELOCs put your house on the line, which means it can be repossessed by the lender if you fail to repay your debt. Additionally, HELOCs typically have variable interest rates, so your monthly payments may vary. When the 10-year draw period on your HELOC ends, you could face high monthly payments on the remaining balance if you haven’t already paid off your pool.

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How Long Does It Take To Build A Backyard Pool

There are a number of factors that will go into how long it takes to get a new pool built into your backyard. In some cases, the contractor of your choice may have a long waiting list. If they do, you may have plans all drawn up and materials ready but have to wait around for the contractor. In some cases, you may experience delays due to availability of materials. You may want to check availability of materials ahead of time if you are trying to get the job done as soon as possible.The average total time to build a pool in your backyard is between 8 to 12 weeks. After you design the look of the pool, get the permits, excavate, install the shell to the pool, and finish with a deck or a patio, it usually takes two to three months to get it all done. But when the wait is over, you will be ready to enjoy your own backyard oasis.While two to three months can often seem like a long time, there is quite a bit of work that needs to be done on the project before you can enjoy your new pool. You are taking an open space in your backyard and turning it into a pool that you can enjoy for years to come. If you are adding some customized parts to the project or there are any special features to the pool, be prepared for it to take a lot longer as well. You may be excited to get to the finish line and see your plans come to life, but be patient. Rushing the build of a pool never ends well. You want to make sure the pool is built properly and turns out exactly how you want it.

Should I Just Buy A Swimming Pool Outright

Another option to consider, if you have the cash available, is to just pay for your new swimming pool outright. That avoids having to pay additional interest and can be a good financial decision. Consider what you would do with this money. You wouldnt want to take money out of your emergency fund, and it can be good to compare the interest rate youd pay on a swimming pool loan with the returns youd get from keeping your money invested instead.

If you dont have all the money youll need to buy your swimming pool, then youll want to explore some loan options. Even if you could pay for your new pool out of pocket, there may be reasons to conserve your cash and finance your pool instead.

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How Does It Work

In order to apply for a loan, you will need to provide the following information:

• Social Security Number
• Retirement Assets
• Liquid Assets

Once you have applied for your loan, your credit will be scanned to give you a fixed interest rate of what your monthly payments will be. Once you have agreed to your terms of payment, the pool construction starts!

Heres a helpful tip: you can finance a portion of your pool project with a pool loan. Many homeowners have done it before, where they cover most of pool cost, then finance the additional items such as patio, fencing, or accessory items.

Pool Financing : How Long Can You Finance A Pool

by Katy-TX-Pool-Builder Katy-TX-Pool-Builder | Nov 18, 2020 | Pool Tips

More than 10 million American homes boast swimming pools.

Pools provide a source of fun, entertainment, and exercise, as well as an opportunity to increase home property value. But the real value comes in the priceless family memories.

Although pools provide a lot of benefits, they are not cheap. The average inground pool costs between $30,000 and $50,000 in the United States. There are a variety of options to finance your pool if you are looking to reap the benefits without placing a financial strain.

The terms of your loanmeaning interest rate, how long you can finance a pool, and other factors will vary by lender. Keep reading to review your financing options and determine which term fits best for you!

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Get Help Paying For Your Pool

If you have themoney in the bank to front the project, as well as the cash to keep up on maintenance and repairs, then a pool can be a worthwhile investment for your household. If not, you might consider financing your purchase through a personal loan, home equity or improvement loan, or a cash-out refinance. A cash-back credit card may also help in some cases.

Just make sure youre prepared to manage your monthly debt payments, as well as the maintenance costs that will come with the pool. Smart budgeting and careful money management are critical if you plan to finance your pool purchase.

How Does A Personal Loan Through Lightstream Work

Obtaining financing for your new swimming pool through LightStream is a simple online process. The loan can offer significant savings with a low APR and no fees. It can even be used to repair or update an existing pool. But not everyone qualifies. LightStream requires good to excellent credit. Loan amounts range from $5,000 to $100,000,

If you’re approved, you must transfer the funds to your bank account within 30 days. After 30 days, you will need to reapply.

What will a LightStream swimming pool loan cost me?

Let’s take a look at the details of the interest rate:

• The interest rate is fixed. It will not change over the lifetime of the loan.
• Interest accrues daily based on the unpaid principal balance. Your payment will first be applied to interest, with the remainder going toward principal.
• You’ll save with AutoPay. If you choose to receive an invoice, your rate will be 0.50% higher.

Interest rates are based a combination of loan amount, loan purpose and length of the loan. Your exact interest rate is based on your credit profile and ability to repay the loan.

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Home Equity Line Of Credit Or Home Equity Loan

A home equity line of credit or loan uses the value of your home as collateral to secure the loan with the lender. According to the Government of Canada , you can borrow up to 65 per cent of your homes purchase price or market value on a home equity line of credit and up to 80 per cent of your homes value on a home equity loan.

Loan type: Secured

Advantages: As a secured loan, youll pay lower interest rates. You can choose a fixed or variable interest rate. If you have a home equity line of credit, there is no fixed payment schedule and you only pay interest on the amount you use.

Disadvantages:You will most likely need to pay legal and appraisal fees as part of the application process. If you have a home equity loan youll receive a lump sum payment and will have to repay the loan back at fixed amounts on a fixed schedule and within a certain time period.

How Much Does It Cost To Operate And Maintain A Pool

The cost of building a pool is one thing and the cost to maintain it is another. Its important to factor in both, especially when you will be taking on a monthly payment to finance your pool. Some expenses involved in maintaining a pool include:

• Pool-cleaning equipment

On average these expenses cost:

• Basic upkeep: $1,200 $1,800 annually
• Upkeep, potential repairs, & increased utility costs: $5,000 annually

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Things To Consider For Pool Loans

Swimming pools are fast becoming one of the most popular additions that we want to make to our homes, and this comes as no surprise.

But before you give your contractor the go-ahead, you need to find a way to pay for the installation of your new pool, and here are the things that you need to keep in mind when considering your options:

• What type of pool are you looking for and whats it going to cost
• How much money you need to borrow based on this
• How much equity you have in your home
• Your credit score and credit history
• Any debt on other loans and credit cards
• The maximum monthly payments you can afford
• The timeframe that you wish to repay the loan over

While the best method of financing will depend on your individual circumstances, RenoFi Loans offer a solution that lets you borrow based on what your homes value will be after construction is completed and theyre an option that we recommend you at least consider if youre not already familiar with what they are and how they work.

Ways To Save Money On A Pool Loan

If you are borrowing for a pool, aim to make sure your loan is as affordable as possible. To do that:

• Borrow the minimum you need to finance your pool. If you can save some money to pay toward it, or opt for a cheaper pool to lower your borrowing costs, your total interest expense and monthly payment will be lower.
• Borrow for the shortest time possible. A longer repayment timeline gives you smaller monthly payments, but your loan costs more in the long run.
• Shop around. Make sure to explore all your pool financing options so you can get the lowest rate and best terms.

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Know Your Options: Pool Loans & Financing

Building the pool of your dreams, dazzling features and all, may take a while, but getting a loan should not. Pinnacle Pools & Spas will help you get the pool financing you need at the monthly payment you can afford.

For over 30 years in the American pool industry, we have built trusted relationships with the best pool financing lenders. Visit our offices in your location to find out more about swimming pool loans.

How Much Does It Cost To Maintain A Pool

Once you sort out your financing options, consider the cost of pool upkeep. This can vary depending on a few factors, but maintenance costs are unavoidable unless you want a nasty, green pool. Here are some of the ongoing costs you take on with a pool:

• Maintenance: Pools require regular care, including seasonal “openings” and “closings” depending on where you live. You can probably cover some pool basics yourself, like checking water chemistry or emptying skimmers, but other jobs require a prothat is, unless you can expertly disassemble and reassemble a pool heater .
• Materials: Your pool’s construction will factor into how much you’ll spend on upkeep over the years. For example, you can opt for vinyl lining to cut upfront costs, but it may require more attention than a fiberglass liner. On the other hand, replastering a concrete pool totals around $10,000, whereas a replacement for a vinyl-lined pool costs under $5,000.
• Utilities: Unsurprisingly, pools require a sizable amount of water. Filling and maintaining tens of thousands of gallons of water adds up on your water bill. As far as electricity, running your pool heater or pump can add an average annual $300 to your energy bill.
• Repairs: Inevitably, whether it be a tear in the lining or a hopelessly backed-up filter, your pool will eventually need some extra TLC. Repairs can cost anywhere from a few hundred dollars to several thousand.

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