Are you into the swimming pool business, or do you want to start one? But you need funds, and you are not able to fund yourself? You might want to get a swimming pool in your private apartment, and you are considering getting a loan for the swimming pool.
Imagine trying to fund the project of starting an inground swimming pool which cost about $50,000. This has probably led you to seek options, searching if there are loans that are open specifically for swimming pools.
This content gives you the exact details on the possibility of getting loans for your swimming pool. Let us jump right into it.
Can You Get a Loan for a Swimming Pool?
Yes, there are means for you to get a loan if you want to have a swimming pool. There are loan companies that give pool loans. Besides this, there are other loan options you can consider.
Rest assured that you are at a good chance of getting a loan from at least one of your options. We will discuss the options later in this content.
Things You Need to Know About Swimming Pool Financing
It would help if you counted your cost before you decide about getting a swimming pool; you have to look beyond your desires. Here are the essential things you need to know.
You have multiple loan options to choose from
You are not short of options besides pool loans, as I stated earlier. This includes unsecured personal loans, HELOCs or home equity loans, cash-out refinance, and going through a pool dealer.
For unsecured personal loans, you won’t need collateral. The downside to this is that you would have to be put with paying with high-interest rates than secured loans like home equity loans. The repayment conditions vary from 12 months to 24 months.
We have HELOCs or home equity loans that give you room to get a loan using your home. So, unlike unsecured personal loans, you use your home as collateral HELOCs or home equity loans. With this, you won’t pay as much as the interest rate paid going for unsecured personal loans. Repayment term is usually longer than unsecured personal loans – mostly between 10 years to 15 years.
The downside to this loan is that your home is at risk if you don’t pay at the end of the repayment term. Of course, before you are approved for this loan, you must have equity in your home.
Then you can go through a pool dealer, who can help you get through to financial lenders. The downside to this is that you will be spending much more going through pool dealers.
It is expensive to finance a swimming pool.
Getting a swimming pool is costly. Even though the kind of swimming pool you want to have will determine the expenses. A vinyl swimming pool can cost you between $20,000 to $60,000. Fiberglass swimming pools cost between $20,000 to $40,000, while a concrete swimming pool may cost between $30,000 and $60,000.
These prices are just the average range that you should expect averagely, but if you are interested in having a more sophisticated swimming pool. Probably you want to get a pool with a waterfall, grottos, or slide. This will cost you way more than the average range I stated.
The interest depends on the lender giving out the loan and the kind of loan you want to get. The interest can be as low as 5% and as high as 36%, with things like the lender, the repayment terms, the kind of loan, and the money loaned would be factored in.
Getting the swimming pool might not be easy
The interest is one thing; getting to qualify for a loan is one thing to battle with. There are many things lenders look at to give you access to a loan, including credit history.
Some lenders might be okay with bad credit, but you can be sure you will have to pay a higher interest rate.
The maintenance of the swimming pool is expensive.
I know you are all about the money involved in having the swimming pool, but you need to know that it does not end when you finish your swimming pools.
The swimming pool needs a level of frequent maintenance. Yes, the upkeep can incur a lot of expenses depending on the kind of swimming pool you want to have. This maintenance includes pool cleaning services, water, and water treatment, lighting, a pool cover, swimming pool heating, etc.
Don’t underestimate the expenses incurred through all these things that need to be maintained. According to HomeAdvisor, average maintenance can cost between $1200 to $1800 per year. This depends on the location of the swimming pool too. If your swimming pool needs any repair at any point in time, that will cost more money. Utility bills can also add up to the expenses, making it rile up to about $5000 a year.
How Long Can Swimming Pools Loan Last?
The kind of loan you are getting will determine the repayment terms. Home equity loans allow you to choose repayment terms between 5 and 30 years. HELOCs come with repayment terms between 10 years to 20 years.
Cash-out refinances mostly have repayment plans between 15 years to 30 years. Personal loans have shorter repayment loans, between 2 years to 12 years. You must be sure of paying back if you are going for this unsecured personal loan.
It is your decision if your swimming pool project is worth getting a loan for your swimming pool loan for. Make sure that you consider things like the cost of financing a swimming pool and maintaining it and the pleasure you want to get from it.
This is just some advice. You can save up to an extent for the expenses. This can help you pay a huge sum of money as a down payment, reducing the amount to be repaid on the interest.
Make sure you read up before you sign up for any loan paperwork. Know the interest you will be paying back, and be sure it is something you can handle