How can i get financing for a pool

This means the price of a swimming pool project might be even higher than what your pool dealer originally quoted. A swimming pool loan lets you pay off a pool build over time. Because installing a swimming pool is expensive, you may want to look into swimming pool loans. Your income and FICO credit score will be major factors in determining the interest rate and monthly payment of any loan you receive.

According to the National Association of Realtors, adding a pool to your home might increase its value by seven percent. Other types of credit can be used to finance a pool installation, but these alternatives are often more costly than a pool loan. For example, using a revolving line of credit, like a credit card, can technically be used to pay for a swimming pool.

However, the average credit card rate is With swimming pool installations having an already high cost barrier that might otherwise make this home improvement project out of reach for homeowners, a pool loan can be a more practical solution for financing swimming pool costs. Due to the high initial investment required for a new pool, many homeowners opt to borrow money for the project and pay it off over time.

A home equity loan lets you borrow against the value of your home and use it as collateral, thus helping you secure a competitive interest rate. Home equity loans work like personal loans — they come with a fixed interest rate, a fixed repayment timeline and a fixed monthly payment that will never change. Using your home as collateral does present some added risk. For example, your home will be subject to foreclosure if you stop making your home equity loan payment, which is not the case with personal loans.

With a HELOC, however, you get access to a line of credit that you can borrow against as needed — typically with a variable interest rate. As with a home equity loan, using a HELOC to finance your swimming pool does come with a few disadvantages.

You are also subject to the same equity limits, meaning a HELOC is only a good option for borrowers with significant amounts of home equity.

The most popular option among pool loans is the tried-and-true personal loan. A personal loan lets you borrow a lump sum at a fixed interest rate and with a fixed repayment period. If you have very good or excellent credit — or any FICO score over — you may even be able to qualify for a pool loan with a fixed interest rate as low as 5 percent. If you do not have a current personal report, Experian will provide a free copy when you submit the information requested. Additionally, you may obtain a free copy of your report once a week through April at AnnualCreditReport.

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Experian websites have been designed to support modern, up-to-date internet browsers. Experian does not support Internet Explorer. If you are currently using a non-supported browser your experience may not be optimal, you may experience rendering issues, and you may be exposed to potential security risks. You'd pay off your existing debt and keep the difference to finance your pool. There are two big benefits to taking out a home equity loan, HELOC, or cash-out refinance to finance your new swimming pool.

The first is that the interest rate will usually be lower than other sources of financing. There are downsides to this financing option, though. You could face high closing costs. Your home is also at risk since it's collateral on your loan, and you could end up facing foreclosure if you can't make payments on your pool. If you've borrowed so much that you have little equity in your home, then you'll have trouble if you need to sell, because you may not be able to get enough in the sale to pay off your loans.

In this situation, you'd have to bring cash to the table, or convince your lender to allow a short sale. That damages your credit tremendously. A HELOC also typically has a variable interest rate, which could put you at risk of borrowing costs rising. Swimming pools don't generally have a great return on investment ROI , so there's a good chance you won't get back all the money you put into the pool when you sell your home. This exacerbates the risk -- tapping into your equity could leave you underwater on your loan, owing more than the home is worth.

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. 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.

If you are borrowing for a pool, aim to make sure your loan is as affordable as possible. To do that:. Financing a pool can be a good option if you want to add a pool to your home, if you can qualify for an affordable loan, and if you don't want to pay for your pool in cash. But remember that a pool isn't a necessity or an investment, and borrowing for luxury items often isn't the best idea, since you're paying interest for something you don't really need.

Many people borrow for things they want, from swimming pools to vacations, but make sure you think through the tradeoffs and the opportunity cost of securing loan funding before you proceed. Our favorites offer quick approval and rock-bottom interest rates. Check out our list to find the best loan for you.

Christy Bieber is a full-time personal finance and legal writer with more than a decade of experience. She also ghost writes textbooks, serves as a subject matter expert for online course design, and is a former college instructor. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. The Motley Fool has a Disclosure Policy. But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you.

That's why we provide features like your Approval Odds and savings estimates. Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can. Plenty of options for pool financing are available.

But swimming pool loans can be expensive, and they can sink you into long-term debt. Understanding all the ways you can pay for your pool can help you decide if you really want to borrow for the expense and what type of loan might be a good option for you. Before you dive into a pool loan, here are five things to know about pool financing and important realities of pool ownership.

When it comes to paying for a pool, there are multiple types of financing to be aware of so that you can choose the best option for you. Putting in a swimming pool is a huge expense, although the cost varies widely depending on the type of pool you install and other factors, like your location, pool size and the features you choose.

Keep in mind that these are just average costs.