Owning a pool used to be something only the upper echelons of society could afford. Now, things have changed. With widely available financing options, many more individuals can own the pool of their dreams. And to make matters better, right now, we’re experiencing historically low interests rates!
If you are thinking about what it takes to become your own pool owner, look no further. At Blue Water Pool Chemical Company, we’re quite familiar with the modern methods to attain pool ownership. Here’s our take:
There are three main routes to pool financing:
- Home equity loans
Most banks don’t offer personal loans for something like building a swimming pool. If they do, the chances are the interest rates would be incredibly high making it too expensive of an option. Home equity loans are the perfect answer to those personal loans with high interest. How they work is that over the years a homeowner develops equity in their property and this type of loan enables the homeowner to access that portion of equity via a lump sum payment with a ten to fifteen year payback period.
- Home equity line of credit
Our favorite user friendly access to financing a pool is a home equity line of credit, otherwise known as a HELOC. HELOCs function by taking the appraised value of your home, subtracting what you owe on your bank note, and securing funding on a credit card. They are excellent options for pool financing because they allow you to pay for your pool by the building phase.
- Cash-out refinancing
Lastly, cash-out refinancing works by taking out a new mortgage for a higher amount than what you currently owe. The benefits of this approach are that you can sign a new mortgage at a lower interest rate.
All three options are typically tax deductible. We recommend that if you are interested, you head to your local bank and talk with a lending expert about what might be right for your specific situation!