Pool Financing

There are various pool financing options now that you've decided to take the deep dive into pool ownership.  Financing allows you to pay for the expense if you don’t have the money on hand or would prefer to keep those resources liquid or invested.   

Paying for your swimming pool can be done in multiple ways; second mortgage, unsecured loan, credit card, or cash.  It's important to get pre-approval if you intend on financing this large of a project to ensure you can get the necessary funds.

A bank or credit union offers home improvement loans. Unsecured loan interest rates are typically higher.  This type of loan does not require you to have equity in your home built up.  This loan option is at a higher risk for banks and doesn't often lend more than $30,000.  

You can also choose to finance by taking out a second mortgage on your home.   A home equity line of credit (HELOC) is a secure loan given it uses your home's equity toward building a pool.  Much like a credit card, you'll make monthly payments on borrowed money at a variable interest rate.  The main benefit to this option is you only pay interest on what you borrow and can incrementally take out monies.  You won’t be on the hook for interest on the lump sum borrowed.  This can be beneficial as the pool gets built in stages.  

Paying fixed interest on the lump sum is the other type of the second mortgage. A home equity loan uses a portion of the home's value that you own.   Although you pay interest on the lump sum, the interest rates are relatively low, and you may be eligible for tax benefits.

If you can pay for your pool with cash to avoid incurring debt, that is always a super option.  If you do need to finance, however, enlisting the help of your builder is beneficial as they have most likely encountered all the various ways customers have paid for their backyard oasis.