At this moment in time, constructing a swimming pool in your yard improves your environment’s aesthetics and home value. Nonetheless, becoming a pool owner needs careful thought and, of course, money. Swimming pools require a lot of attention and frequent maintenance practices. Besides, they also need chemicals, landscapes, accessories, and pool equipment, all of which are costly. Pools vary in material, shapes, and sizes. Based on pool professionals, a fiberglass pool can cost up to $24,000, excluding the installation costs. But it is not advisable to exclude installation since this will mean you will do it yourself, which is not practical at times, particularly when you are not so knowledgeable about pools and pool loans.
The estimated cost of a fiberglass inground pool installation lies within a range of $45,000 to $85,000 and includes any additions. On the contrary, the above-ground pool is much cheaper and could go for approximately $6,243, depending on your pool contractor. Even so, this is still a large sum of money, considering you still have to add other costs.
Because of the enormous pool construction costs, most homeowners prefer to obtain a pool loan from financing institutions. Consequently, homeowners have an easy time getting their desired pool without having to present all the money beforehand.
There are many sources of pool loans, but the most popular one is the personal loan. This financing method allows you to borrow a large sum of money at a fixed rate within a specified period. As a result, you regularly pay a specific amount every month until the completion of payment.
Moreover, banks or financial institutions secure personal loans. Thus, you don’t have to let your house serve as collateral. In particular, if you a good credit score, it is possible to qualify for a loan with a low interest of up to 5 percent.
Ultimately, there are several benefits attached to personal loans. They include:
Keep in mind that there are other financing options outside of personal loans. In case you desire a pool loan, you might also consider getting home equity lines of credit and home equity loans. Both need you to put your house as collateral hence securing a favorable interest rate.
Even so, these types of pool loans are a little different from the others. Home equity loans are similar to personal loans since they have a fixed interest rate and regular monthly installments. On the contrary, home equity lines of credit have flexible interest rates. Your rate may fluctuate depending on various economic situations, throughout the loan’s lifespan.
Most benefits of the home equity loan are like that of personal loans, although in this case, your house serves as collateral. Consequently, this presents risks since your home can face foreclosure once you stop making the pool loan payment. Most pool lending companies grant you up to 85% of your home value. Therefore, this option only works best for homeowners with a large amount of home equity.
Ensure that you have a rough idea of the amount you desire to spend before acquiring a pool loan. You can consult several pool contractors to obtain an estimate of the pool construction costs. Afterward, employ a pool loan calculator and calculate the amount you are willing to pay every month. For instance, if you desire to pay off your loan quickly, you can choose to pay off a higher monthly payment.
Furthermore, identify the period you desire to live in your home. Suppose you plan to stay for a longer time, and then estimate the total maintenance costs. On the other hand, if you intend to sell your home, note that the pool will increase your house value, but potential buyers will be few.
In summary, the thought of having a pool in your backyard sounds fascinating. However, it could turn into a financial burden if you are not well equipped for the accompanying costs. Fortunately, there are many pool loan options to choose from and settling for the best deal that makes your dreams comes true without any financial strain.