In this day and age, every homeowner dreams of having a swimming pool in their backyard. However, most potential pool buyers give up once they see the cost they have to incur. Contrary to popular belief, the pool construction process is less costly than you can imagine. It is essential to find the right financing methods with reliable pool financing companies. There exists a wide variety of pool financing options. They include home equity lines of credit, personal loans,cash-out refinance mortgages, and home equity loans.
Based on HomeAdvisor.com, the estimation of pool installation expenses is $25,224 and lies within a specified range of $12,985 to $37,731. These costs relate to both in-ground and above-ground pools.
Total pool construction costs vary depending on the pool type. For instance, in-built pools cost $35,000 to $65,000, thus are relatively costly. On the other hand, above ground pools are more affordable since their cost ranges from $1,500 to $15,000. Why the big difference in costs? In ground pools add more value to the home compared to above-ground pools. Additionally, their unique style and beauty that offers breathtaking views explain the difference.
Moreover, pool expenses differ based on the shape, size, installation technique, and the materials used in constructing the pool. Besides, any additions during construction also determine the total costs. It is also important to note that most pool guidelines authorize pool fencing to safeguard everyone in the surrounding environment. Consequently, fencing and installing automatic pool covers contribute to the overall cost.
Also, it is vital to incorporate the annual maintenance costs and utility expenses. According to HomeAdvisor.com, these costs range from $500 to $4,000 annually and differ based on the type of pool built. This means that costs are approximately $4,000 to over $40,000 in a decade. Therefore, it is vital to work with pool financing companies to help you cater to all the required costs.
As seen in the above paragraphs, pool expenses vary depending on the type of pool. The first thing to do before constructing a pool is to determine the kind of pool you intend to build. Also, ensure you settle for what you can pay for and manage in the long run. After doing this, decide on the specific technique you will use in financing the pool. Currently, there are a lot of pool financing companies that lend a hand to homeowners requesting pool loans. Some of them provide personal loans, which are also referred to as unsecured pool loans. Based on your financial standing, these loans could have higher interest rates compared to home equity loans. Nonetheless, personal loans are relatively fast and cheaper to process. Usually, you can obtain the funds in less than a week, and your home does not need to serve as collateral.
Alternatively, you could opt for secured loans, including home equity loans, cash-out refinances, and home equity lines of credit. Every option has its advantages and disadvantages, but your preferred choice relies on your taste and preference. For instance, suppose you want a loan with a favorable interest rate, a cash-out refinance may not be a good option as it usually comes with a higher interest rate than the other financing options. On the other hand, if you require a large amount of money but low-interest rates, then a home equity loan would be the best option for you.
Ultimately, credit cards are not the best financing option for your swimming pool since they have higher interest rates.
This loan is also defined as the second mortgage and offers large amounts of money at fixed interest rates. Mostly, pool financing companies require one to pay this loan within a period of ten to fifteen years. Upon authorization of this loan, costs accompany the new loan; however, this depends on the pool financing company. Even so, the costs cannot compare with those of the cash-out refinance loan.
The advantages of a home equity loan include:
The disadvantage of home equity loans is that it is not separated from the mortgage. You have to borrow and pay the interest against a certain percentage of your mortgage debt. So, you might consider a home equity line of credit.