Installing a new pool can be an investment that brings your family years of recreation and fun times, but it can be costly. Before you consider a pool, it’s a good idea to figure out if it makes financial sense for your circumstances, and if i𒆙t’♍s worth exploring swimming pool financing to make your backyard dream a reality.

Learn more about how swimming pool financing works, if it’s worth considering, and how to find the right lender.

Swimming Pool Costs

According to HomeAdvisor, the average cost of building a swimming pool in your yard ranges from $20,000 to $100,000, with a national average of $62,500. Your final price tag will depend on a variety of factors, including the size of the pool, the type of materials used, and your location.

Above-ground pools are far less expensive, with an average $700–$5,000 price tag. If you’re breaking ground, expect it to cost a significant five-figure amount. Material-wise, concrete is the most expensive, starting at around $50,000, but it lasts the longest. Fiberglass is less expensive and has lower maintenance costs, while vinyl is typically the least expensive but may require more upkeep.

On top of that, having a pool comes with ongoing maintenance expenses, which also depend on the type of pool. You should expect to budget around $80 to $150 per month for pool maintenance (opening and closing costs plus chemicals). Plus, your electric bill will likely go up by around $50, or even more if you use a pool heater.

Financial Factors to Consider When Adding a Swi♏mming Pool

Before you decide to move forward with financing for a sw꧅imming pool, here are some 🐻considerations.

Eligibility Requirements

Whenever you’re considering a lending product, you should first assess your creditworthiness by looking at your credit score. Lenders typically review your 澳洲幸运5官方开奖结果体彩网:credit report and want to make sure you have steady income in order to approve you for a loan.

The better your 澳洲幸运5官方开奖结果体彩网:credit score, the more likely you can qualify for the most favorable interest🍒 rate offered. If you are having struggles with credit or no verifiable income, your loan options may be limited or more costly.

Interest Rates

When financing a new pool, you should get quotes from several lenders. Higher interest will impact your monthly bill as well as the amount you end up paying over the life of the loan. In addition to your own credit and financial situation, other things that can affect 澳洲幸运5官方开奖结果体彩网:interest rates include general economic conditions, the amount you borrow and the term of t🌠he loan, and your location.

Loan Terms and Repayment Options

The length of the loan (the loan term) and how you repay the loan are important to understand since they will impact your budget. Longer loan terms can lower your monthly bill, but you’ll pay more over the life of the loan. As for 澳洲幸运5官方开奖结果体彩网:repayment options, inquire as to how flexible lenders are regarding how you repay the loan. For instance, is there a 澳洲幸运5官方开奖结果体彩网:prepayment penalty? Are there any discounts for setting up autopay?

Ways to Finance a Swimming Pool

You have various 𓄧𝔉options for financing a swimming pool, including the following.

Personal Loans

澳洲幸运5官方开奖结果体彩网:Personal loans are a popular option for pool financing because they are unsecured loans that have fixed monthly paym💫ents for the life of the lo🧔an.

Loan terms can range from a year to several years, depending on the l♕oan amount and the lender. You will have to go through an application process, but many personal loans can be approved and funded within a few days. The key is to try to find a loan with a competitive interest rate and minimal or no fees, to keep your cost of borrowing as low as possible.

Secured Loans

澳洲幸运5官方开奖结果体彩网:Secured loans require you to put up something for collateral, such as a vehicle or some other possession. This takes some of the risk away from the lender since if you aren’t able to pay your bill, they can seize your 澳洲幸运5官方开奖结果体彩网:collateral.

For this reason and depending on the lender, these loans could have a lower interes🅷t rate, which could be an advan𒀰tage. Just keep in mind your higher level of risk should you run into cash flow problems.

Home Equity Financing

If you have ample home equity, you could tap into it to finance home improvement projects like installing a pool. A 澳洲幸运5官方开奖结果体彩网:home equity loan is 🅘essentially a second mortgage, which means you’ll have to go through a detailed application process and need to meet all of the lender requirements.

Depending on the interest rates, you may be able to get a lower rate on these products than you would with a personal loan. The downside is that you are decreasing the 澳洲幸运5官方开奖结果体彩网:equity in your home and putting your house on the l🐟ine if you become unable to ♛make payments.

Steps to Secure Swimming Pool Financing

To finance a pool, follow these steps.

Research and Compare Lenders

Take your time to understand your options when borrowing a significant amount of money. Compꦐare loan types, interest rates, fees, and repayment terms to find the best product for you.

Gather Documentation

In most cases, you’ll need to share documentation,𒅌 including your personal identification, pro𝕴of of address, and your income. Some of these documents include:

• Photo ID
• Utility bill or something with current address
• Bank statements
• W-2 form

Submit the Loan Application

Many loan applications can be done onl෴ine or over the phone. Prepare to answer basic questions about your contact information, your employment, your income, the reason for your loan, and the lo༺an amount you are seeking. Upload photos of any required documents.

Tips for Successful Swimming Pool Financing

Large home projects like putting in a swimming pool require a bit of research even before you start looking for financing. You’ll want to come up with a budget amount, get contractor quotes, and then run your numbers to decide on the best financi🃏ng approach.

Make a Budget for the Project

It’s important to create a realistic budget for a swimming pool project. The best way is to price out various pool types and materials, speak to people who have done similar projects, and request some estimates and quotes from local pool installation companies. Also, be sure to factor in additional project costs, s🔯uch as pool equipment and accessories, bringing in an electrician if necessary, or doing any other yard preparation, as well as ongoing maintenance expenses.

Find a Reputable Contractor

After meeting with a few potential pool companies, do some due diligence to be sure you are choosing a reputable contractor for the project. 🦹Ask for customer references, read online reviews, and make sure every detail of the project is added ༺to the contract.

Understand Loan Agreements

Once you decide on pool financing, carefully review the loan agreement (before signing) and ask any questions you may have about th💙e terms and conditions. You should have a clear understanding of the total loan amount, interest rate, term, monthly payment amount, and any associated fees.

The Bottom Line

A swimming pool can bring decades of joy to your family, but it’s a large inv⛦estment. If you decide to move f🙈orward, pool financing can help you pay for the costs over a period of time. Put in the time to research your options to find the best loan product for your situation to keep your borrowing costs as manageable as possible.