Swimming Pool Loans: Compare Your Financing Options
Personal loans, home equity loans, and dealer financing can all be used to finance a swimming pool. Knowing the types of swimming pool loans available and what to look for can keep you from going under water later.
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Swimming pools are a popular addition to residential properties. They are awesome for fitness, provide endless entertainment for kids, and are a great place to kick back and relax.
Despite the benefits, however, they are also expensive. In fact, the average in-ground pool costs between $25,700 and $29,600 to install.
Luckily, there are various types of swimming pool loans and other financing options that can help you cover the costs.
On this page:
- Personal Loans for Swimming Pools
- Home Equity Products for Swimming Pools
- Swimming Pool Dealer Financing
- Pros & Cons of Swimming Pool Loans
Personal Loans for Swimming Pools
Compare Financing Options for Your Pool
Personal loans are typically unsecured products (meaning they require no collateral) offered by banks, credit unions, and other lenders. These are often a good choice for financing a swimming pool because of their relatively low rates, wide range of loan amounts, and predictable repayment schedule.
In order to qualify, you typically need to have consistent income and a good credit score. The higher your credit score, the lower the interest rate you will receive. The most qualified borrowers can expect a rate under 10%.
Loan terms typically range from around 2 to 7 years and rates are usually fixed.
Home Equity Loans & HELOCs for Swimming Pools
Home equity products, as you might guess, are secured by the equity in your home. They offer you the opportunity to borrow money at a lower rate than most personal loans or credit cards and come with longer terms for repayment.
Home Equity Loans
Home equity loans are great if you know exactly how much you’ll need up front and are confident you won’t go over budget.
A home equity loan works much like other loans. First, you apply and, if approved, you receive the loan proceeds in a lump sum. Payments generally start the next month and you’ll make monthly payments until the loan is paid back in full.
Interest rates vary by lender but usually range from around 4% to 10%.
You can compare our top choices for home equity loans and learn more on our Best Home Equity Loans page.
Home Equity Lines of Credit
With a home equity line of credit, you can borrow money up to a limit and repay it as many times as you’d like during the draw period, which is usually five to 10 years.
They tend to have slightly higher interest rates than home equity loans, but still far lower than a credit cards and typically personal loans if you don’t have great credit.
If you’re worried about going over budget or don’t want to take out more than you need, a HELOC can help by allowing you to only take what you need when you need it.
You can compare our top choices and learn more on our Best HELOC Rates & Lenders page.
Swimming Pool Dealer Financing
Swimming pool dealers often offer in-house pool financing, but this is generally the most expensive of the three major options.
While they often run specials where 12 or 18 months are “same as cash” with a “pay no interest” period, if you aren’t able to pay off the pool during that time, you’ll often be stuck with a high interest rate.
To make matters worse, they may even add on the interest that was accruing in the background during the introductory period which can be substantial.
Pros & Cons of Swimming Pool Loans
Before getting a swimming pool loan, it’s important to consider the benefits and drawbacks.
- Space cost of the pool out over multiple years
- Those with good credit can qualify for very low rates
- Many lenders charge no or low fees
- You can usually pay your loan off early with no penalty
- Like all loans, interest will be charged effectively increasing the total cost of the pool
- Your credit could be damaged if you fail to repay an unsecured loan such as a personal loan
- Your credit could be damaged and you could lose your house if you fail to repay a home equity loan or HELOC
Figuring Out If You Can Afford a Pool Loan
Look at your budget. How much can you afford to spend on pool-related expenses in a given month? How much equity will it add to your home, and is the expense worth it? Are there any other alternative options you might consider before financing?
You may decide that you need to get a smaller pool than you envisioned or even choose to put off financing at all until you can afford the pool you want out-of-pocket.
Depending on where you live, such as a northern location with snow on the ground eight months out of the year, you may decide that the limited use doesn’t justify the expense.
Building a swimming pool is a major investment. Before you leap, have a solid financial plan for how to afford it and make sure to find the best way to pay for it.
That way, once it is installed, you can relax poolside knowing that you have a plan for repayment and there is nothing to worry about with your swimming pool loan.
Ready to finance your pool? Check out our top-rated personal loan partner, LightStream.
4.99% – 16.99%*
$5,000 – $100,000
*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice.
1The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.
Author: Dave Rathmanner