How To Finance A Pool With In
In-house funding is essentially the same thing as an unsecured loan, except it is channeled through the pool company. At Olympus Pools, we offer hassle-free pool financing to help you design and build the pool of your dreams. Contact us to see if you qualify and begin your backyard transformation today.
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.
Should You Finance A Pool
Pool financing is a smart idea when you cant buy a pool outright. But you dont have to be short on cash to apply for financing. It can also be a smart idea when you do have enough cash for a purchase.
Installing a swimming pool is expensive, and frankly, you might have reservations about spending a large chunk of your personal savings.
Some people would rather keep their cash liquid and finance the purchase, if they can get a low rate and an affordable payment.
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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.
Lightstream Swimming Pool Financing
Everybody loves a new pool the kids, the neighbors, the dog. But are you ready? Its a great time because our financing partner LightStream, a division of SunTrust Bank, offers a special interest rate if you have good to excellent credit. Apply now, and when you qualify, you can use your LightStream loan proceeds for:
- Renovation of your pool deck and finish
- Pool components and systems
- Construction of your pool or spa
- Upgrades to your landscaping or backyard
- Any other related expenses
- Flexible loan amounts, from $5,000 to $100,000
- Same-day funding available
- Simple online application takes minutes to complete
- No fees, prepayment penalties or down payments
- No liens or collateral required
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The 5 Best Pool Financing Methods
Creating a backyard oasis is a significant investment in your home and lifestyle that few of us can pay for without financing at least a portion of the purchase. This article covers the five best pool financing approaches and discusses one that we often caution our customers against using. Added bonus: you can use these approaches to finance your swimpool !
How To Finance A Pool With A Swimming Pool Loan
There is a myriad of unsecured loans available for homeowners who have not yet established enough equity in their home. These loans are often called swimming pool loans since so many people use them to finance inground pools. Pool loans are only offered to homeowners with excellent credit who are willing to pay higher loan rates than a second mortgage might offer.
What credit score do you need to finance a pool with an unsecured loan? The lender is assuming the risk the opposite of a home equity loan, in which the homeowner assumes the risk. Due to the risk that the financial institution incurs, a higher credit score is needed. Typically the minimum is set between 640 and 750.
Unsecured loans also carry higher interest. Rates vary but are usually around 14 to 18 percent. Additionally, unsecured loans have caps, and most lenders will not loan more than $30,000, which means that homeowners may need to come up with additional funds.
Pros of a swimming pool loan
- Unlike the other options, there is no threat of foreclosure because there is no collateral.
- Funds are released very quickly, often within a week.
Cons of a swimming pool loan
- Interest rates can get high.
- The amount of money you borrow may not cover the entire cost.
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Is An Indoor Pool A Good Investment
Indoor pools are expensive to install, costly to maintain, and dont add a lot of value to your home. From a financial perspective, there are probably better ways to upgrade your home. However, many people love to swim, and a pool will provide a lot of enjoyment. So, if this is something you value, it could be a good investment for you from a lifestyle perspective.
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How Much Should I Borrow For A Pool
How much to borrow to finance a swimming pool installation comes down to personal preference. How much debt are you willing to take on?
Since the ROI on a pool isn’t very good, you can’t necessarily count on getting back what you borrowed if you sell your home. That means your pool isn’t really an investment, but rather a luxury item. And borrowing a lot of money for luxury items can compromise other financial goals.
To decide how much to borrow for your pool, you should consider:
- The amount of interest you’re willing to pay
- How the monthly payments fit into your budget
- What happens if you lose your job or run into another financial emergency?
You’ll want to make sure the total costs of your loan aren’t unreasonable, given your income and the value of your home , and that your monthly payments fit easily into your budget.
If the costs of a pool are so high that you’ll struggle to make your payments or have to spend a fortune in interest costs, opt for a less expensive pool or save more to put down, so you can borrow less.
How Do You Finance An Inground Pool
Personal loans can be used to finance inground and above ground pools. However, inground pools can be much more expensive than above ground pools. This means that if you are going to finance an inground pool you should pay close attention to the rate and terms of your loan. Home equity loans are commonly used to finance inground pools even though they can be riskier than personal loans. Home equity and home improvement loans usually offer lower interest rates. Personal loans do not require any collateral but home equity loans do. When you use a home equity loan you are essentially borrowing against the positive equity your home has. If you do not have positive equity in your home you may not be able to use a home equity loan. In most cases, you need good to excellent credit to qualify for home equity loans.
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What Is The Average Monthly Payment On A Pool Loan
Monthly payments on your pool loan will vary based on a number of factors, including the loan term, interest rate and amount financed.
To put this in perspective, a $30,000 loan over 84 months could cost anywhere between $400-$500 per month. A $40,000 loan over the same term would result in a monthly payment of $550 to $675, while a $50,000 loan would cost about $700$850 per month.
However, if you extend your loan term beyond the standard 84 months, you can lower your monthly payments considerably, making a pool more attainable for many. The trade-off is that you will likely pay more interest on the loan over time.
For example, if you choose a 180-month loan term, your average monthly payment could be $200-$300 less. If you finance $50,000, your payments might be around $395 per month. A $30,000 pool would cost less than $250 per month.
You can also lower your monthly payment by putting a down payment to reduce the amount of money youre ultimately financing.
Using a swimming pool loan calculator like the one Lyon Financial provides can help you get a feel for how these factors impact your monthly payment.
How Can I Afford A Pool
Having your own pool is a luxury. Most homeowners have daydreams about all of the luxuries owning their own pool could provide. But when they start to consider the cost of building a pool, they can be quickly detoured. So how do you afford a pool without saving for years on end or emptying out everything in savings? Building your own pool may be more affordable than you think with pool financing.
A new pool is considered an investment that not only you and your family will enjoy for a great number of years, but it also is an investment that can increase the value of your home. This is especially true if you live in a warm-weather state like Arizona or Florida. In states with warm climates, the absence of a pool or not having an abundance of outdoor living spaces in general, can be a detriment to your reselling efforts. While some potential homebuyers may not want a pool, others may be touring any home they can find in their budget that already has a pool.
In some cases, contractors may offer financing. If they do, you should listen to what they can offer. If they do offer financing they most likely partner with 3rd party lenders that do the actual financing. It can benefit the contract as well as the homeowner. Whether your contract does or does not offer financing, you should check pool financing offers at Acorn Finance. Acorn Finance has a network of top national lenders that specialize in unsecured home improvement loans.
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Can I Get A Loan For An Indoor Pool
If you have your heart set on putting in a pool, youll be happy to know that pool financing is available. There are several options to choose from. Before applying for a pool loan you should explore your options to determine which is best for your situation. Pool loan options include. . .
#1. Personal Loans
Pool loans are available as personal loans. If you do not have collateral you may want to consider a personal loan. However, personal loans are usually only offered up to $100,000. Maximum loan amounts can vary depending on the lender. Loan amounts also vary depending on what you qualify for.
#2. Financing offered by contractors
Some pool contractors or companies offer financing. They often have a quick turnaround time for approval. One thing to be aware of, though, is that their rates can be relatively high, which will increase the costs of installing your pool.
#3. HELOC
#4. Cash out refinance
Another way to get swimming pool financing is using a cash-out refinance. A cash-out refinance lets you borrow up to 80% of your homes value. The approval process can be a bit complicated, but once its done, the additional funds are added to your mortgage, and you have just one payment to make. Rates are fixed for the term, so you will know what your payment is each month. This is a mortgage, so your home is collateral. This means the lender can take your home if you dont make your payments.
#5. Home equity loan
How Do I Pay For A Pool
Pool buyers typically pay for their swimming pools using a home equity line, second mortgage, unsecured loan, out of pocket , or credit card. If you are planning to finance a large portion of your project, get pre-approved before having companies out for estimates. This ensures you can secure the necessary financing.
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Home Improvement Loan From A Bank Or Credit Union
With a home improvement loan, youll be approved for a set amount of money which youll receive in a lump sum. Youll pay the loan back with regular payments of principal and interest over a set period of time.
Loan type:Unsecured
Advantages: Great for one-time lump sum purchases where you know the cost ahead of time, such as a pool or swimpool. Theres the option of fixed or variable interest rate. These loans have lower interest rates than most credit cards.
Disadvantages: Higher interest rates than a secured loan. It can be difficult to get a larger personal loan without an excellent credit rating.
What To Consider When Applying For A Pool Loan
When applying for pool financing, your personal credit is the prime concern. The higher your credit score, the better interest offer youre likely to receive. Many lenders offer the best terms for borrowers with in the mid-700s and higher.
The length of the loan term will depend on which method you choose for pool financing. But many lenders allow a term length of a decade or more. When you decide on the financing, make sure to account for all of the costs associated with the project.
With any renovation, its important to know how much you have available to spend, said Nelson. With a solid budget in place, you can prioritize your projects scope make informed choices on how much you have available for construction labor, products and services and determine how to fund the project in the most economically sensible way.
Its a good idea to overestimate expenses when budgeting. There are usually costs that you might fail to see when youre in the planning stages.
Digging up your background to install a pool can affect groundwater management and plumbing, said Goldman. Many folks dont account for permitting or surveys when creating their budget that could be required by their municipality. You dont want those hidden costs to catch you by surprise.
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Your Pool Is Part Of Your House
If your pool is considered part of your home for insurance purposes, which is often the case with standard pools such as a 14×30 inground pool, it will fall under your replacement cost coverage. This coverage pays to replace your home. If your pool is considered as part of your home, the replacement value of your home increases accordingly. This also increases the cost of your insurance.
Best Bad Credit Loan: Lendingclub
LendingClub
If you have less-than-stellar credit, qualifying for a personal loan can be challenging. LendingClub is our top choice for borrowers with bad credit since you can add a cosigner to your loan application to increase your chances of qualifying for a loan.
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You can add a cosigner to your loan application
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You can borrow up to $40,000 without collateral
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Loans disbursed in as little as three days
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Maximum loan term is just five years
With LendingClub you possibly can qualify for a loan even if your credit score is slightly low because you can add a cosigner to your personal loan application. This increases your chances of qualifying for a loan and securing a competitive interest rate. Besides personal loans, LendingClub also offers small business loans, medical financing, and auto loans.
With LendingClub, you can borrow up to $40,000 without collateral. However, its maximum loan term is just five years, so make sure you have a plan for repaying the loan on time. LendingClub does charge origination fees. Depending on your location, the fee can be 3% to 6% of your loan amount, which can add hundreds or even thousands to your loan cost.
Interest rates range from 7.04% to 35.89%, and you can check your rate and loan eligibility without affecting your credit score. If approved, it can take three days or more before your loan is disbursed.
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