Can you finance a pool?
It is a nice thing having your pool and it can also be thrilling having a personal pool in one house. You can find joy and also be happy where you have somewhere like pool to always cool off and also provides recreation during your leisure time. The pool can be installed in any size depending on the available money to build it. In ground pool and above ground pool are the two major types of pool that are available and people mostly do.
The in ground pool is usually costly to build and install and this is due to the involvement of high labour and materials for the installment. The above ground pool on the hand has the cost at a minimum rate depending on the size though. Some of the labour which are involve in the in ground pool are the digging, dirt removal, the insertion of pool liner and also pouring of concrete.
It is also not easy to install above ground pool but it is way more easily than the in ground pool. A few thousand dollars or pounds is enough to finance above ground pool and this depends on the country where it is being installed.
There are many ways pool installation can be financed. Some of the financing methods can be home equity loan, seller financing, credit cards or first mortgage. It is always advisable to know if a portion of the income is enough to finance the pool to avoid bankruptcy.
Home equity loan
There are variables interest rate practiced by many home equity loan. This variable interest rate is the type of interest rate in which the borrower either pay less at the beginning of the loan period and started paying more towards the end or the borrower pays high at the beginning and started paying more towards the end; But mostly less at the beginning and more towards the end.
Financing a pool can be through home equity loan and this is the dissimilarity between the worth of the house and the money owed to the bank on it. When using this, there is a risk of losing the home to the bank of the loan payment is not made on time because there is a chance of the bank increasing the credit limit at a percentage that is more than the original money owed leading to higher interest rate.
This is a method in which the pool installer would be the one to use his own money in the installation of the pool while the borrower will have to be making a mortgage payment after the installation. Both the installer and the borrower benefits from this method as that the borrower has his pool while the installer has his money at a higher rate than the one he should have collected.
READ: Lease financing
Another advantage to the borrower is that the installer can’t remove the pool even if he does not pay; one of the things he might suffer is arrest by the police men because it must have been stated in the agreement form and the promissory note.The installer finds a finance company to finance the installation. The mortgage payment is made to the finance company instead to the installer but the installer has his own cut from the finance company for providing them with customer. As a borrower, there would be a form to sign which is the retail installment contract which states that the deal can be cancelled if the installer does not install it right or installed it poorly. The tax rate on the pool should be considered before considering seller financing because the finance company won’t cover that in there agreement with you. The interest rate on the finance should also be considered to avoid problem of default in the future.
This is done by adding the installation expenses on the cost of building the house which the bank has giving you the loan to build the house if you are building your house from scratch. You should look for a mortgage company that specializes in construction of pool but government cannot be relied on because some rural development programs do not support the installation of in ground pools.