What to Know When Comparing Pool Financing Options

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Building a pool is fun but demands careful financial planning. Many homeowners finance a new pool to make it more affordable. A pool contractors in my area can advise you on usual expenses and the best financing choices.

Pool financing often involves a home equity loan or line of credit. Many prefer this financing since it has lower interest rates than other loans. Home equity—the value of your home minus your mortgage—determines how much you can borrow. Home equity loans provide flat cash for your pool and a fixed interest rate. However, a line of credit operates like a credit card, providing you a limit and charging interest only on what you use.

Personal loans don’t require collateral like your home. Getting a personal loan might help you start your pool project immediately, frequently in days. Personal loan interest rates depend on credit score and financial history and can be higher than home equity loan rates. Personal loans are an option for those without enough equity or who don’t want to use their property as collateral.

Some pool contractors partner with lenders for funding. This is advantageous because you can arrange construction and funding through one person. Contractor-offered financing may have low interest rates for the first few months or years, but read the fine print to see what the rate will change.

Credit cards can finance modest pool projects like improvements or equipment. Credit cards offer instant funding but higher interest rates than alternative borrowing choices. If going through this method, use a card with a promotional 0 percent APR term and pay off the balance before it expires.

Alternative funding and incentives are available for eco-friendly pool installations. These may incorporate solar heating or energy-efficient pumps. Energy conservation initiatives by several state or local governments include refunds or special financing terms for such projects.