how long you can finance a pool

Pool Financing 101: How Long Can You Finance a Pool?

More than 10 million American homes boast swimming pools.

Pools provide a source of fun, entertainment, and exercise, as well as an opportunity to increase home property value. But the real value comes in the priceless family memories.

Although pools provide a lot of benefits, they are not cheap. The average inground pool costs between $30,000 and $50,000 in the United States. There are a variety of options to finance your pool if you are looking to reap the benefits without placing a financial strain.

The terms of your loan–meaning interest rate, how long you can finance a pool, and other factors will vary by lender. Keep reading to review your financing options and determine which term fits best for you!

How Long You Can Finance a Pool

The actual terms of your pool will depend on what type of pool you purchase. There are several variations, depending on the price point. This includes size, shape, add-ons light lights and slides, etc. 

There is also prep work to consider, depending on the type of land and elevation surrounding your property. Furthermore, some insurance policies, townships, and homeowners’ associations require fencing around pools.

These are all added costs to consider when estimating pool financing. 

It’s best to shop around and consider all options when looking to finance a pool. Each lender provides different options, and each will affect the financing terms. Understanding financial options is considered equally as important as the design and construction of the pool itself.

Your best option will depend on a few factors, including:

  • The monthly payment you can realistically afford
  • Your credit score/history
  • Early repayment options
  • Interest rate

In turn, the length of your loan will rely on the plan you choose.

It’s best to shop around and consider all options when looking to finance a pool.

Swimming Pool Financing as Part of a Construction Loan

If your new swimming pool is part of a new home build, you might be able to integrate a pool loan with your construction loan.

This depends on your mortgage lender and its available options. If possible, this loan structure can save you time and money compared to two separate loans.

Furthermore, mortgage interest rates tend to be less than home improvement financing–so this option would likely be cheaper in the long run. If you decide to refinance your mortgage in the future to take advantage of lower rates, the pool loan would be streamlined in already.

This method also saves money along the way with costs outside of the loan and interest, including appraisals, surveying, etc. that are associated with application fees.

Plus, this type of loan can have added tax benefits. In most cases, you do not have to itemize the pool financing with new construction, unlike with a home improvement loan. The interest for the new construction mortgage (including the pool financing) is also tax-deductible.

In terms of length, mortgages also provide a longer amortization term. Whereas typical home improvement loans tend to last 7-15 years, mortgages can be 15-30 years in length. 

Home Equity Loans

A home equity loan, also called a second mortgage, is when the lender provides the money upfront at a fixed interest rate.

If you have sufficient equity (usually a minimum of 15-20%), this may be a good option. Interest rates tend to be lower, and interest is typically tax-deductible.

That being said, the process to obtain this type of loan can be long and tedious. Plus, if you were unable to pay back the loan you risk home foreclosure.

These loan terms tend to be shorter than a mortgage; with this financing option, 10-15 years tends to be how long you can finance a pool.

Home Equity Lines of Credit

Home equity lines of credit (HELOC) are similar to the previous method, as they allow you to borrow against your home.

Financing, in this case, depends on various factors, including the appraisal of your home value, remaining mortgage, debt-to-income ratio, and credit score/history.

The difference here is that instead of a lump sum, you get a credit card or checkbook to make purchases. This way, you only withdraw the funds that you need.

One important thing to consider is the fees associated with this type of loan. These tend to be steep–including the appraisal fee, application fee, closing costs, etc.

Due to the nature of HELOC, the terms are unique. The term for how long you can finance a pool can vary.

The pool financing term can range anywhere between 5-30 years. In a 30 year example, you may have up to 10 years to withdraw funds and up to 20 years to pay them back. 

Other Pool Financing Options

Whereas the aforementioned loan options were secured, there are various other unsecured (meaning they do not require collateral) options available.

Unsecured loans may be obtained from a bank or credit union, as well as online peer-to-peer lenders. These tend to have much higher interest rates, with terms varying from 12-84 months by lender.

Credit cards can be another option for inground pool financing.

Particularly with offers with 0% APR for a set amount of time, pools could potentially be paid off with no interest. This is tricky, however, as you would need a credit limit high enough to finance the entire pool project.

Furthermore, these offers are usually only for a limited time span. If you are confident in your ability to pay off the card before this window expires, you may find success. But if you are unable to finish paying off the card and the offer expires–you will be stuck with the remainder of the financed amount tacked onto a large interest rate.

In this case, there is no definitive term. You could pay the minimum on the card until no balance remains. But a financially-savvy customer would pay the balance off in full as soon as possible (and before the 0% APR offer ends!)

In-House Financing Options

Some pool construction companies partner with trusted financial institutions to provide pool loans to their customers. This method makes it simple and convenient.

You pick the contractor, and they source the loan for you.

In the Katy, Texas area, there are several trusted and well-respected options for pool financing. These options include:

  • Lightstream, with loans as low as 3.99% for up to 12 years
  • HFS Home Improvement Loans, with terms as low as 2.99% for up to 20 years
  • Lyon Financial, with financing solutions as low as 2.99% for up to 20 years
  • Frost Bank, with rates as low as 4.24% for 15-20 years (secured) or 8.24% for up to 5 years (unsecured)

Swimming Pool Financing in the Katy, TX Area

If you’re west of Houston and looking for a new swimming pool, look no further.

There are countless options for customizing your new pool–and customizing the financing along with it.

Contact Sahara Construction & Custom Pools today for a free consultation! Ask them about their financing options, including what lenders they trust and how long you can finance a pool.