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Posts Tagged ‘swimming pools’

With the current state of world affairs and the current economy more and more people are choosing to partcipate in “stay-cations” rather than going on an expensive vacation. What better way to optimize a stay-cation than with a pool in your own backyard. With a pool in your own backyard you can lounge around in the sun, take a refreshing dip all without the crowds that would be typically found at a hotel. And even with the current economy, if you don’t have the ready cash, there are many ways to find pool financing.

Before selecting a method of financing, you need to have an idea of how much money you’ll need, and to do this you will need to select a builder. This may be a harder process than actually securing financing, but a good builder will often be able to help you navigate through getting financing. Many wll know whether it’s currently better (read cheaper) to take out a second mortgage or apply for a line of credit as long as both options are available to you. Some builders will also offer their own financing. While this may be convenient, and you may like and trust your builder, please do your own research and pick the option that makes the most sense for you financially.

When people build or buy a new home they often want to get everything over with and put in a pool as well. In this scenario it is possible to tie your pool financing in with your home financing. However, this may not be the best option, as paying off a pool over 30 years can result in a hefty amount of interest (usually more than the original sum of the pool). This option while convenient may not be the smartest option. It is possible to apply for a separate shorter term loan in addition to your mortgage - although applying for so many loans at once may be daunting. Also, home builders often require you to choose a pool builder from their pre-approved list of builders.

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.

There are some other considerations when looking into potential lenders for your pool financing. For one, it is wise to choose a lender that is familiar with pool financing. This should enable them to give you a decision in a matter of days instead of weeks, moving the process along considerably. Also, some people attempt to pay the pool builder directly with a credit card. Most reputable pool companies will not accept this as a form of payment for many reasons. For one, it often signifies their inability to get other financing.

Mortgages, second mortgages, lines of credit, financing through a builder; all of these can sound confusing and daunting. However, there are many resources available, and if you do your research there is pool financing available to build your pool and have a vacation at your home on a daily basis.

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