There might be nothing more exciting than having a pool right in your own backyard, especially since we still need to socially distance ourselves in public. However, one of the downsides of installing a swimming pool is its costs. An inground swimming pool can cost over $50k on average. So, if you are thinking about buying an inground pool, you are probably also thinking of how you can pay for such a big project. Although some might opt to use their savings, many will find another way to finance their purchase.
The good news is you can choose one of many ways to help you finance your swimming pool. Keep reading to find out.
Refinancing refers to the process of replacing your current mortgage with a new one. You can usually refinance to get a lower interest rate and reduce your monthly payments. Depending on your home equity amount, you could get cashback when you choose to refinance your home. You can use this cash for whatever you want, such as debt consolidation, home improvements, and even building your own swimming pool. The benefit of going with a refinance is that it allows you to borrow 80% of your home’s equity. So if you have had your home for a while or if you made a big down payment, then this could pay off and give you plenty of money to finance a new pool.
In layman’s terms, a secured loan refers to when the bank or lending institution uses collateral like your home as a means to secure the loan. This means if you end up defaulting on the loan, they can claim the rights to your house so that they are able to get their money back. This type of loan is one of the most common types of loans when it comes to the swimming pool construction industry since it allows homeowners to borrow against the equity they have in their home, which allows them to finance their pool project. Plus, secured loans usually have a lower interest rate, and the payments can be spread out over a long period of time in comparison to other types of loans.
Home Equity Line of Credit (HELOC)
A home equity line of credit (HELOC) is a revolving credit line that is secured by your home’s equity. A HELOC acts like a credit card. If you are approved, you can access enough credit to finance your pool and pay it back on a schedule. The benefit of a HELOC is that your monthly payments are based on how much you withdraw from the account, then you will only need to pay interest on what you end up borrowing. The time period for drawing is typically ten years, so you will still have access to the line of credit even after you have already paid off your pool. Another benefit is that the interest rates on HELOCs are typically lower than credit cards or personal loans since your home will secure the debt.
The experts at Boxx Pool can help you transform your backyard. Whether you’d like to elevate the appearance of your pool by adding a water feature or are in need of more information, we can help, so contact us today!