Financing a Pool Into Mortgage – Build Your Dream Pool

Photo of author

( — May 9, 2019) — What does it mean to start financing a pool into mortgage? Basically put, how are you going to pay for the installment of a pool on your property? Swimming pools are a beautiful addition to any home that increases it’s property value and it’s entertainment value as well. The cost, however, may leave you sinking in debt if not planned well enough.

Financing a Pool Into Mortgage

Financing a pool into mortgage can be done in various ways. You can take out a home equity loan, a line of credit, pay with a credit card, or more.

Home Equity Loan –

A home equity loan is using the amount of property already owned as collateral for a loan to purchase a pool. These loans can be given by any financial institution such as banks, credit unions or the lender that already receives the payments on the homes mortgage.

Home Equity Line of Credit –

Similar to a home equity loan, home equity line of credit uses the amount of property you’ve already paid for as collateral for a loan. One of the main differences between this and the previously mentioned loan is the monthly rate of payment. While home equity loans are a fixed monthly payment, a home equity line of credit interest rates fluctuate depending on the market rate.

Pay With Credit Card –

Something you may not know, is some pool contractors won’t take credit cards until the final stages of the construction process. Other contractors are willing to allow credit card payment with a small fee. Paying with credit card means not using the property as collateral and no extra loan payment, just the regular monthly bill payment.

Loan Based on Saving Account –

If you go to your bank, you may be able to enroll in a “savings secured loan”. This is basically the bank transferring money from your savings account into a certificate of deposit.

Pool Financing Company –

If you’re lucky, the company that you choose to install your pool with recommend a loan company either through their company or someone that they are affiliated with. This is an easy choice as instead of owing money to your pool contractor and a seperate lender, you are basically making payments to the same company as if you were enrolled in a payment plan with them except with a little extra interest. The process to apply for the loan is pretty fast and you can be approved in less than 24 hours.

Lend From Your Own 401(k) –

Tapping into your 401(k) is an effortless option as well since interest rates are better in comparison to commercial loans from other lender. However, the downside of lending the money from here is in the case that you are not able to pay it all off within 5 years, you will be hit with a 10% early withdrawal fee.

In Conclusion

Pools are a beautiful addition to the home and can improve the quality of your lifestyle and your property. Paying for the pool and wondering how to go about when financing a pool into mortgage can be a difficult and long process. You should always do as much research as you can about lenders, your bank options and other resources to be well informed on what option is best for you and your budget — when you’re building the pool and the maintenance costs it’ll incur.