Want to build a beautiful swimming pool in your backyard, but don’t have enough cash to finance the project? Most people don’t, and that’s why they look for pool financing options to raise money and realize their dream.
In this blog, we’ll discuss the five smart ways to obtain financing.
Let’s get started!
Personal loan
You can apply for a personal bank loan to add a swimming pool to your home. If you have a good credit score, you’ll obtain pool financing at low-interest rates. However, make sure you don’t stretch the duration of your loan; otherwise, you’ll end up paying a lot of money in interest payments.
Home equity loan
If you don’t have a stellar credit score, you can opt for a home equity loan. As the name suggests, it will allow you to get financing using your home equity. You can choose a tenure up to 30 years, but it’s recommended to keep it as low as possible. Choosing this option will allow you to obtain tax benefits, as it’s treated as a second mortgage.
Cash-back refinancing
A cash-back refinancing is an arrangement where you take out a new mortgage to raise additional finance. For instance, if you need $40,000 for a pool, but still have an outstanding balance of $120,000 on a home mortgage, you can refinance the mortgagee for 160,000 and use the $40,000 to cover the costs of installing a pool.
Borrow against your 401(k)
You can also borrow money by turning to your 401(k) account to finance your pool project. The interest rates are fixed at 1% to 2% above the going prime rate. You’ll be required to make monthly or quarterly payments. Technically, you’ll pay the interest back to your retirement fund. Just make sure you don’t default on payments to avoid early withdrawal fees.
Pool company financing
Many swimming pool contractors offer pool financing to their clients, either using their funds or through an external provider. Professional pool companies provide loans up to $150,000 to help their clients build a dream pool in their property. It’s a great way to raise finance without going through much hassle.
Final words
A swimming pool may seem like an expensive choice, but it can be a great value addition to your home. You must weigh all the financial considerations, from the cost of pool financing to the maintenance expense, against potential benefits like an increase in home value and improved quality of life to make the right decision.
If you’re looking to build a pool in your home and looking for an experienced pool contractor, get in touch with Perfect Pools today!
Based in Sterling, Virginia, we’re an award-winning pool design, build, renovation company that offers excellent services along with pool financing options to our clients.
We serve Round Hill, Lansdowne, Middleburg, Willowsford, VA, and more. Book a free consultation here or give us a call at 571.267.7488 for more details.
ALSO READ: 4 THINGS TO CONSIDER BEFORE YOU GET A POOL
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