Installing a pool in your backyard is always a great idea. It will not only significantly boost your comfort and provide you with new activities to enjoy, but it will also increase the overall value of your property. However, most people are worried about the investment they have to make. Yes, this project can be quite costly, but there are several ways you can finance it, and here are some of them.
Personal loan
This is probably the first method you thought of. It is to be expected since these unsecured loans are very popular nowadays. In a nutshell, you can get the funds from several sources, from banks and credit unions to online lenders. If you have a good credit score, the process of being approved is fairly simple, and you will receive the money quickly. As you can assume, this method has certain pros and cons.
When it comes to the former one, you are not required to use your home or anything else as collateral, meaning that there is no risk of bank foreclosure if you don’t meet the payments. On the other hand, the main disadvantage of this type of loan is that sometimes, interest rates can be quite high. Due to this reason, you have to compare these requirements between several lenders before making the decision.
Home equity loan
A home equity loan is another option you have. Basically, it is a second mortgage, and you will borrow against the value of your property. The thing with this one is that you cannot get more than 80% of the current value of your home. Because of this, if you are thinking about this method, you should first use the pool financing calculator to get a rough estimate of the costs and learn whether this is the right choice for you.
Fixed interest rates are the main advantage of this loan. It means that you will be able to plan your future finances and won’t be presented with any additional expenses. However, a home equity loan comes with closing fees, and you have to use your property as collateral.
In-house financing
When it comes to the two previously described methods, you don’t have to go into detail about why you need the loan and how you will use it. However, when it comes to in-house financing, it means that you will collaborate with the company you choose for the job to get the loan. That’s right.
Nowadays, many companies collaborate with lenders, so you can easily get the funds you need. Many people find this option appealing since the builder is already familiar with the overall amount of money you need to invest and the process of getting it fairly simple. However, there are two downsides to this option.
First of all, not all companies offer this service, so you will either have to find a different lender or go with someone you are not comfortable with, which is something you shouldn’t do. Secondly, the conditions of these loans are not favorable. Yes, we are talking about the interest rates, which can be very high. Because of this, make sure to inspect all the requirements and terms in great detail before signing the contract.
