Financing

How to finance a pool

How to finance a pool

Having your own pool can be very thrilling. Having a please to cool off during leisure time a place that provides you recreation like pool can be very good and happily. You can have your pool installed in sizeable manner with sizeable amount of money. There are majorly two types of pool which are the in ground pool which are usually costly to install due to high labour and materials involved and above ground pool. The labour involve in in ground pool are much which involves removing of dirt, digging, putting in pool liner and also pouring concrete.

So, here we will make you understand about how to finance a pool.

READ: How long can you finance a RV

The above ground pool is though not easy but easier than in land pool. The finance for installing above ground pool is usually a few thousand dollar or pounds depending on the country the pool is to be installed. There are many ways you can finance your pool. You can try seller financing, home equity loan, first mortgage or credit cards. Before financing your pool, you should know your income if it is enough to get your interest payment made.

how to finance a pool

Seller financing

The pool installer or dealer uses his own money to finance the installation by borrowing you the money or by providing a finance company to give you loan to install the pool. Instead of paying the dealer later, the payment is transferred to the finance company. And you as buyer, you would have to sign a retail instalment contract which provides that if the pool dealer does not pool properly or does it poorly, you have the right to cancel the deal. Before you try seller financing method, you should consider the tax rate on the pool, the interest rate on the financing and the due time the financing is ending.

READ: How to calculate finance charge

Getting all these done and comparing it to your monthly income makes you consider if you will be able to be financing the pool or not because if at the end you could not finance the pool, some charges like finance charge might be imposed and you might end up losing your home.

First mortgage

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. If you have purchased already constructed house and does not have pool, the bank does not add the pool installation on the loan provided for purchasing of the house but if you were to purchase an already constructed house, you can include the cost of the pool installation on the loan to be given to you by the bank but if the bank disagrees with this method, you can try out other source or other bank to secure loan in construction of the pool.

You should look for a mortgage company that specialises in construction of pool but government cannot be relied on because some rural development programs do not support the installation of in ground pools.

Credit cards method.

Your credit card can be used in funding of pool installation without the risk of losing your house. Although the credit cards interest rates are usually higher than the mortgage interest rate but before you can use your credit card in financing the pool, you need a good credit records and a sterling credit score as the bank must be very sure the money wold be paid. As must as you get your credit card with higher credit limits, the bank does not use your home as collateral but financing in credit cards is unsecured.

READ: What is finance rate

Home equity loan

Although many home equity loans practice variable interest rate by paying less at the beginning and start paying more towards the end. How to finance a pool, you can get your home equity loan that is the difference between what the houses actually worth and the money owing the bank on it. With this you might be at a risk of losing your home if you could not make payment because the bank will actually increase the credit limit at a percentage that is higher than the one you are owing before which makes the interest rate to be high.

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Harish Yadav

Finance and market analyst and chief writer on howtofinance. Passionate to read books and articles on marketing and accounting. Also edits other articles and publish them here.

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