How to Finance Your Swimming Pool
A swimming pool is within your budget with these financing tips.
A swimming pool can be a fun addition to your outdoor space, but it can also be a costly one. Few homeowners are sitting on the thousands of dollars necessary to get one of these structures installed. The good news is that there are plenty of options for financing a backyard swimming pool that provide easy monthly payments that make your visions of a swimming pool a very affordable dream. We've got tips on how to shop for swimming pool financing to find the best deal for your needs.
Assess Your Financial Situation
The type of swimming pool financing you get will depend greatly on what you can afford to pay. You should be able to set the terms of your financing based on how much you want your monthly payments to be. if you can afford higher payment amounts, you may want to go with a shorter term on your loan. If higher payments are too much of a stress, ask about a long-term loan similar to the one you currently have on your home.
You also need to decide if you want unsecured financing or a home equity arrangement. Unsecured financing is an option for people with stellar credit who don't have enough value in their current home for a refinancing or second mortgage option. Unsecured loans usually come with a higher interest rate because they do not include collateral to secure the loan. However, second mortgages are tied to your home; if you default, you could lose your house in the process.
Some people also choose to refinance their home and make the cost of the swimming pool a part of their primary mortgage payment. This decreases the monthly payment amount of the pool considerably, since it will probably be financed over a period of 15-30 years. This may be a good option if interest rates have dropped considerably since the time of your first mortgage. The lower interest rate may mean a lower monthly payment overall, even with the cost of the swimming pool factored in.
Choosing a Financial Institution
It is important to choose your financial institution carefully when financing your swimming pool, to ensure you get the best deal. Companies that are experienced with pool financing are often the best choices, since they understand the unique circumstances involved with financing a pool. It is helpful to find a company that will assess the value of your home based on current tax statements or recent property appraisals, rather than charging you for a full appraisal of your home that could cost hundreds of dollars. Shopping around for the best fees is another way to find a good finance company, since banks can vary considerably in what they charge to process your loan.
Financing a swimming pool is a big undertaking, but the right financing company can make the process easier and more affordable. By first assessing your own financial needs and then choosing the company that is prepared to meet those needs best, you can find swimming pool financing that will be reasonable and easy on your budget.