Summer is coming! At least here in Florida the weather is already summer-like. And no matter where you live, summer will be on its way to you shortly. With long summer days in your mind, swimming pools may be on your mind as well. The cost of in-ground swimming pools can be a minimum of $50,000 – it depends not only where you live, but what type of pool you want as well. There are a handful of options for you if you need to finance your swimming pool.
To start with, as mentioned a few posts ago, a cash-out refinance is an option. If you have a decent amount of home equity, you will be able to get cash back when you refinance your mortgage. The cash that you get back can be put toward a swimming pool. This will also add great value to your home as well. You can borrow up to 80% of your home’s equity.
You also have an option of a home equity line of credit. This type of credit is a revolving credit line that your home’s equity secures. This line of credit is very much like a credit card. As long as you are approved and you have enough credit to make the purchase, the credit can be used to finance a new swimming pool. Since the debt is secured by your home, the interest rate is typically lower than a regular credit card or even a personal loan.
You can also take out a home equity loan. It is basically a second mortgage. This type of loan gives you all of the money upfront, unlike a home equity line of credit. This type of loan does come with a closing cost and uses your home as collateral. If you stop making payments for any reason, you may lose your home.
If none of the options mentioned sound good to you, you also have the option of applying for a personal loan. Some institutions label them as a “pool loan” – as that is exactly what it is.
If your dream is to have a swimming pool in your home, just be sure you are not taking on too much of a financial burden. Make sure it makes sense for finances.