I want to build a swimming pool. What is the best type of loan for a pool?
It’s the middle of the summer, and right about now that pool you have been considering seems like a great idea. It’s not too late to get started, especially if you've already been doing some research on what kind of pool you’d like. But have you done any research into the type of loan you’ll use?
Many people pay for the construction of a pool with a HELOC or a fixed rate second mortgage. That way the payment can be spread out over more years and the interest may be tax deductible. One of the downsides to a HELOC is that you have to get an appraisal and have title and deed work done, amongst other closing costs associated with a new loan. It will most likely take about 2-4 weeks to close the pool loan.
A personal or signature loan is usually a shorter-term loan at a higher rate, so it could cost you more in the end. However, this could be a quicker option if you’re ready to get started and are worried summer will slip away before your pool is complete.
In addition to the HELOC and signature loan, some people refinance a newer paid off vehicle to pay for a pool loan – or at least part of it. The auto loan rate is the lowest of all the loan types and easier to arrange.
Before beginning construction on a pool, be sure to do some research on whether or not you think it will add value to your home. It’s not a guarantee, and many factors can come into play: the kind of neighborhood you live in, your home owners association rules and of course, the cost of your total project.
Swimming pools can be great additions to a home. Who doesn’t love a nice pool during the summer months? Before you start digging, make sure you consider the additional costs associated with a pool, like maintenance and upkeep costs, as well as anything aesthetic you might add: lights, a cover, and of course, fencing. Safety is of the utmost importance with a backyard pool, which will most likely lead to higher insurance premiums.
So, is a backyard pool in your future? There is a lot to consider, but with the right loan and a game plan, you could be out there soaking up the last sunny days of summer.
