A new swimming pool can definitely be a smart investment and a welcome addition to any backyard. However, after getting estimates from San Diego pool builders, some homeowners find they don’t have the full amount necessary to completely pay for a beautiful new pool, especially when factoring in costs for excavation, labor, and related pool structures and systems. Fortunately, there are a number of ways to get financing to make a new swimming pool a refreshing reality.
Many banks offer home improvement loans that can be used for such things as building a new swimming pool. This process usually involves completing a standard loan application and showing proof of your ability to repay the loan. However, interest rates tend to be higher over time if you prefer to spread out your payments.
Credit unions are not-for-profit organizations owned by their members, which means they usually have lower fees and interest rates than banks. Even if your credit isn’t the best, a credit union may be willing to work with you and offer reasonable terms. However, you’ll need to be a member and meet the membership conditions.
The equity in your home refers to how much of it you actually own based on what you have left to pay on the mortgage. This fact will also determine the amount of the loan you would be eligible for, since you would be borrowing against the equity. Banks, credit unions, and other financial institutions typically offer loans of this nature. You may also apply for a home equity loan through the same lender that’s handling your mortgage. While interest rates on these loans may be higher than your original mortgage rate, they still tend to be on the lower side.
Bonus perk: You may be eligible for tax benefits if you use your home’s equity to pay for a home improvement project.
Some pool builders will accept credit cards as long as you pay the merchant service fee. The potential downside here is that interest rates may be high. You’ll also want to do some homework and see how adding new pool costs to your balance will affect your payments. If you have concerns about repayment, you may want to only put part of the pool costs on your card and explore other financing options for the rest of your pool-related expenses.
Similar to a home equity loan, this option is also based on your home’s equity. The limit is set by the lender and can be affected by market values. However, you’ll only pay interest on the amount of credit you use, since the funds are distributed in increments instead of one lump sum. Other options for financing your new swimming pool include:
• Using your personal savings account to secure a loan
• Borrowing from your 401(k)
• Getting some help from friends/family members
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 one of the best family-owned pool companies in San Diego, 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.