A swimming pool can absolutely be a smart and frequently used investment for anyone in the San Diego area with room for this particular backyard addition. The one caveat is that an underground pool can also be a significant investment. Fortunately, there are some ways you can finance a swimming pool and turn your backyard pool vision into a beautiful and enjoyable reality.
With this approach to financing, you’ll be replacing your home’s current mortgage with a new one. The added bonus here is that you may end up with a better loan rate. Plus, if you have enough equity in your home, you could also get a sizable amount of cash back when you refinance. This money can then be used for many different purposes, one of which could be paying for your new swimming pool.
• You’ll have to qualify for a home loan again based on your current information
• It’s a secured loan, so you’ll want to make sure you can make the payments to avoid foreclosure
• Your monthly payments may increase, since your mortgage balance will go up
Secured by your home’s equity, a home equity line of credit functions like a credit card. Therefore, if you’re approved for credit of this nature, you could use it to finance your pool. The top perk here is that you can repay what you owe over a period of time in a way that gives you more affordable payments. Interest rates also tend to be lower than what’s common with credit cards.
• Interest rates are variable and not fixed
• It’s also a second mortgage that can increase your overall mortgage balance
• It may be difficult to refinance your primary mortgage if you opt to do so in the future
Similar to a home equity line of credit, a home equity loan also allows you to tap into your home’s value to pay for your swimming pool. The main difference is you’ll be given a lump sum of cash instead of a line of credit. These loans typically have a fixed rate, which makes payments more predictable. Interest may be tax deductible as well, which is also true with a home equity line of credit.
• You’ll have to deal with closing costs
• Your home also acts as collateral
• You’ll need to be diligent with payments to avoid foreclosure risk
If you have concerns about tapping into your home’s equity and you don’t wish to refinance, consider an unsecured personal loan. These are loans you can get from your local bank, a credit union, or another financial institution that offers personal loans to qualified applicants. If approved, you may get the full amount you need to pay for your swimming pool.
• Rates are typically higher than home equity options
• You may end up making more payments to compensate for the interest
• You may not qualify for a loan amount that fully covers your pool costs
If you’re building a pool and you want to get the best value for your money, reach out to the experienced pros at San Diego Pools. As a family-owned San Diego swimming pool contractor, we’ve been transforming customer dreams into reality with creative designs and high-quality custom construction for more than forty years. Give us a call today at 888-707-7786 to learn how we can build the pool that’s perfect for you.