Getting a swimming pool will add beauty and value to your home. Plus their lots of fun for the whole family. But paying for a new pool quite as fun as swimming in it.
Thankfully, there are a few financing options available that will make paying for your new pool easier.
The two most common ways to finance your pool
There are two ways most people finance their pools. Neither option is "better" than the other. They are just different. Your lender may be able to help you decide which option you may want to chose.
Swimming pool financing option #1: Home equity loan
Since a new pool is likely adding value to your home, your home may be worth more after the renovation than before. That will allow you to take out a home equity line of credit and borrow against the new equity in your home, and maybe even keep your mortgage payments the same.
Swimming pool financing option #1: Cash-out refinance
With mortgage rates dropping near 5-year lows, you can refinance your house at a lower rate than you have now and cash-out the difference. Unlike a home equity line of credit, this would give you one lump sum to take out right now.
How much should you borrow?
Ideally you should take out 10-15 percent more than the quoted price of the project. This will leave extra money in case anything unforeseen comes up.
Finding the right lender
There are so many lenders out there, but it's best to go with a well-known company. And like swimming pools, it's best to get more than one quote. The lender should also be able to answer any of your questions about the loan.
Swimming Pool Financing Options: