Pool Financing: What’s Still Available.

Terrorist attacks, hatred of Americans, more countries that it isn’t safe to travel to, and the weak economy are all contributing factors to the growing number of Americans who choose to vacation at home rather than go to some exotic locale. And with the savings they get from staying home some are choosing to make their homes more comfortable and vacation friendly. Of course, no vacation is complete without a swimming pool. With a swimming pool right in your back yard you can enjoy all the benefits without the crowds, and you can design it exactly they way you want (with the help of a professional of course). The good news is, that even with the economy in its current state there are several pool financing options still available.

However, before you begin looking at different financing options it is best to decide on your pool builder. This is a process in and of itself which we won’t go into here. Once you have decided on a builder you will have a good idea of the amount of money you’ll need. Builders will often be able to give you advice concerning which option for financing your pool is best in the current market, and some may offer financing themselves. However, while the builders advice and expertize may be invaluable be sure to do your own research and make the decision that is best for you financially. Don’t be pressured into a financing option based on a someone else’s opinion.

The first financing scenario involves a person who is buying or building a new house. In this case the cost of the pool is often tied in with the cost of the house. However, this is not always the smartest option as the total interest you pay can be astronomical at the end of a 30 year mortgage. It is possible to apply for a separate shorter loan for your pool, however, then you will have two payments. Some home builders also require that you choose a pool builder off their list of approved contracters. So this may not be the best pool financing option.

A more common scenario involves the family who decides they want to add a pool to their existing home. In this case there are usually two options: a second mortgage or a line of credit based on the current equity in the home. The line of credit typically has a lower interest rate, but the interest is compounded more frequently (monthly rather than annually). The second mortgage may have a higher interest rate but the interest is compounded only annually. Therefore it is important to research your options. Which option is right for you will depend on your income, equity in your home, what type of interest rate you qualify for, and how quickly you plan on paying off the loan.

Some people attempt to to pay the pool builder directly with a credit card. Many pool builders will not accept credit cards as a form of payment. The interest payments for the customer are insane, and it can signify an inability to get other financing, which can be a red flag to the builder. Also, when attempting to choose a lender make sure to ask if they typically do loans to finance pools. If they are familiar with the process things will typically progress at a faster rate.

Line of credit, second mortgage, commercial bank, small town bank, financing through the builder, there are many options for pool financing. If you are wise with your money you will be able to make the decision that’s right for you and make every day a vacation at your house.

Melvin Moore is a finance and swimming pool journalist who writes about inground pool financing