Many homeowners fantasize about adding a swimming pool to their backyards, but they assume it’s a cost-prohibitive daydream and never look into it any further.
The fact is, there are several pathways to building your own inground pool. In this article, we look at the three most common ways owners can fund their improvement projects, including pool installations.
What's Your Budget?
The first and maybe most obvious question is, how much can you afford?
To get started, you may find it helpful to use a cost calculator. For example, Spartan Pool & Patio has one that can help you get an idea of how much it would cost to build your new pool. You can find it here >
According to House Beautiful, on average, building an inground pool can cost from $55,000 to $150,000+, depending on what you're looking for.
Before exploring funding options, it’s a good idea to sit down and think about what exactly you want your pool to look like and how you envision using it.
Will you host lots of barbecues around your pool? Evening soirees? Kids’ birthday parties? Or do you want a small cocktail pool for two?
If you dream of a pool with a rain curtain water feature and a hot tub, you’ll have to budget more than if you’re just looking for a convenient, private way to practice your swim strokes or simply hang out with your kids.
Talk with an expert (like us!) to explore what types of materials are available to you and how they might affect the overall budget.
Remember, too that you’ll have ongoing maintenance costs to consider such as pool chemicals, accessories, and pool service.
Finally, we suggest you check with your homeowner’s insurance and municipal laws before making any decisions to find out whether safety fencing is required. A fence will increase the overall cost.
Unsecured Loans
This type of loan — also referred to as a personal loan — can be a good option if you don’t want to touch your home’s equity.
With an unsecured loan, you don’t need to put up collateral or pay a security deposit but instead, you qualify based on your creditworthiness and income. (Hint: you’ll need good credit so be sure to check out your credit score.)
From your perspective, this is a lower risk loan since you’re not required to put up any collateral. From a lender’s perspective, they’re assuming more risk. So, they can charge a higher interest rate and put a cap on how much you can borrow.
These loans are generally processed quickly and borrowers often have access to funds within a week. We work with the following financing partners:
Home Equity Loans
Often referred to as “second mortgages,” home equity loans distribute a lump sum of money to the borrower at a fixed interest rate. Usually, the borrower agrees to pay back the loan over a period of 10-15 years.
These loans are secured, which means you’re putting up your home as collateral, so the lender has recourse in the event you stop paying back your loan.
The good news is that these loans generally come with a lower interest rate than unsecured loans.
Keep in mind that interest rates may be tax-deductible. Check with your accountant as you work through your pool planning.
Home Equity Line of Credit (HELOC)
HELOC’s offer a bit more flexibility than a home equity loan. Instead of receiving one, big cash infusion, a HELOC is a revolving line of credit that allows you to borrow against your home incrementally.
Again, you are agreeing to put up your home as collateral in the event you default on your loan. Your credit limit is determined by several factors, including credit history, debt position, and income.
Once your limit has been established and approved, you are given a set of blank checks or a credit card you can use to start your pool construction.
Unlike a more traditional home loan, you only draw down as much money as you need at any given time during the construction process rather than sitting on a pile of cash that’s accruing interest daily.
HELOC’s usually have variable interest rates, although under some circumstances lenders may be willing to convert to a fixed one. Talk with your lender to see if you qualify for a fixed rate.
Cash-out Refinance
This loan replaces your existing mortgage with a new home loan which is for more than you actually owe on your house. The difference goes to you in cash.
Borrowers are allowed to spend this money on things like home improvements, debt consolidation, or other financial needs.
To qualify for this type of loan, you must have equity built up in your house.
Typically, these loans carry a higher interest rate than the others because lenders see it as a higher risk. They’re likely to impose stricter qualification criteria as well.
If you’ve already got a low mortgage interest rate, you may want to consider using a home equity loan or a HELOC to fund your pool construction instead.
Does Spartan Pool & Patio Offer In-House Financing?
Although we do not offer in-house financing, we offer multiple finance partners on our website, which makes it convenient for you to explore your options!
Don’t let your daydream slip away — with Spartan’s finance partners, you could finally have that pool you’ve been dreaming of!
Get in touch with us today and let's get started!
