Swimming Pool Loans

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A “pool loan” is another name for a personal loan that is used for a home improvement project, such as a pool installation. These are unsecured installment loans, which means you don’t need collateral to qualify. You’ll repay your debt over a fixed period with a fixed interest rate. Below are three lenders you might consider for your pool installation.

3 options for swimming pool loans
LightStream FreedomPlus Best Egg
APR 3.49% to 19.99%¹ 7.99% to 29.99% 5.99% to 29.99%²
Loan terms 24 to 144 months¹ 24 to 60 months 36 or 60 months²
Loan amount $5,000 to $100,000 $7,500 to $40,000 $2,000 to $35,000; offers up to $50,000 may be available
Origination fee No origination fee 1.99% - 4.99% 0.99% - 6.99%
Minimum credit score requirement Not specified Varies 640
We selected personal loan lenders listed on the MagnifyMoney marketplace, assuming a credit score of 720 to 850, ZIP code 11220 and a loan amount of $22,191, the average pool installation cost according to HomeGuide. The first three lenders by minimum APR were selected. MagnifyMoney is owned by LendingTree.

 

What to consider when comparing pool loans

APR:
An APR includes the interest rate plus any fees the lender charges. It’s a more comprehensive measure than just the interest rate, so be sure you compare the APRs when shopping for loans.
 
Interest rate:
An interest rate, expressed as a percentage, is what the lender charges you for borrowing money. With a personal loan, the interest rate is most often fixed.
 
Repayment term:
You’ll have a certain number of years or months to pay off your loan. This is known as the repayment term. How long can you finance a pool? Usually between 12 to 60 months, but some lenders offer much longer repayment terms. A longer loan term means you’ll pay more in interest over time.
 
Late payment fee:
If you fall behind on payments, you may have to pay a fee.

Origination fee:
Some lenders charge this fee for processing your loan application. Depending on the lender, this fee can equal 1% to 8% of the loan amount or higher, and it may be subtracted from the funds you receive.
 
Prepayment penalty:
Some lenders charge this fee for paying off your loan early. It’s typically equal to a certain number of months’ in interest or a percentage of your remaining balance.
 
Eligibility requirements:
To reduce their risk, lenders want to be sure you can repay the loan. They’ll usually check your credit history, income and other debt payment obligations, plus consider the loan amount. You can always ask the lender about the credit score needed to finance a pool and whether they offer pool loans for bad credit.

What is the average cost of a pool?

There are two main types of pools: in-ground and above-ground. Your costs will vary based on the size and type of the pool and the materials used.

Without upgrades, the average cost for an in-ground pool is around $28,000 to $55,000. Above-ground pools cost on average about $1,850 to $4,977.

A deeper dive into your pool installation costs

Pool types and costs
Above-ground $1,800 to $8,000
Inground vinyl $25,000 to $45,000
Inground fiberglass $18,000 to $65,000
Inground concrete $29,000 to $60,000
Source: HomeGuide
A lot of work goes into building the pool, from the planning and excavation to the landscaping and water system. Here’s how the average cost of a swimming pool can break down:

Installation:
Expect costs to range from $1,800 to $8,000 for an above-ground pool and from $18,000 to $65,000 for an in-ground pool.
 
Excavation:
This involves digging the ground to make room for the pool and cleaning up afterward. Excavation may cost $9.22 per cubic foot, or between $1,770 and $13,800 total.
 
Fencing:
Building a fence around the pool can help keep your backyard safe — and may even be required, depending on the municipality. This may cost between $600 to $4,400.
 
Pool heater:
A pool heater costs may range from $550 to $10,000 plus up to $500 for installation.

Landscaping:
This involves preparing the land for the pool and then decorating afterward. You may have to reslope the lawn ($1,850 on average), cut down trees (average of $825 per tree) and install a yard drainage system (about $3,400). Once the pool is installed, new landscaping can cost about $4 to $12 per square foot.
 
Water system and electricity:
A pool water filter may cost between $199 and $1,500, and you could pay up to $240 a year to replace water lost to evaporation. Then there’s the cost of the electricity needed to keep the filter and pump running, which can be about $1,200 per year.
 
Taxes and insurance:
If your pool increases your home value, your taxes may increase. Plus, your home insurer may hike your rate due to the increased risk that comes with a pool.

Don’t forget swimming pool maintenance costs

Annual cost of maintaining a pool
Basic upkeep $375 to $2,750
Electricity $780 to $1,200
Insurance Depends on whether you increase your liability limits or add an umbrella policy
Source: HomeGuide

The monthly cost of a pool can range from $31 to $230 a month for basic upkeep, but you should also consider the costs of electricity and the increased costs of homeowners insurance and real estate taxes.

4 other ways to finance a pool

  1. Home equity line of credit (HELOC)
  2. Home equity loan
  3. Cash-out refinance
  4. Pool company financing

1. Home equity line of credit (HELOC)

With a HELOC, you can borrow from the home equity you’ve built, which is the market value of your home minus your mortgage balance. Once approved, you may borrow the amount you need, up to a maximum amount, on demand.

HELOC payments are based on the amount you’ve borrowed and typically come with a variable interest rate.

A HELOC may be a good option if you’re not sure how much you need and when you’ll need it. The interest may be tax-deductible in some cases. However, because you’re using your home as collateral, you risk losing the home to foreclosure if you fall behind on payments.

2. Home equity loan

A home equity loan also lets you borrow against the equity in your home, but in this case, you’ll receive a lump sum of money upfront.

These loans typically come with a fixed monthly payment and fixed interest rate that’s usually lower than APRs on personal loans and credit cards. Like a HELOC, the interest you pay may be tax-deductible. But the same risks apply with a home equity loan because your home is used as collateral. If you fall behind on payments, you risk losing your home.

3. Cash-out refinance

With a cash-out refinance, you take out a new mortgage that’s larger than your current mortgage and pocket the difference. You can use the extra money for just about anything, such as pool financing.

You’ll repay the new mortgage over time with the new loan terms. This option may be ideal if you have a lot of equity in your home, but your new APR may be higher than it was on the original mortgage. That’s because the lender is taking on more risk as you borrow more equity in the home.

4. Pool company financing

Some pool installation companies offer financing directly to consumers or will arrange financing by forwarding your information to lenders. Some even offer buy now, pay later swimming pool financing. However, pool financing is usually more expensive than other options, such as a home equity loan.

You’ll find secured or unsecured options, with fees varying depending on the company. You may be barred from refinancing with a different company, which isn’t a common restriction among other funding options. Before committing, make sure this is your best financing option and that you’ve chosen a reputable pool installation company.

FAQs: Pool loans

Pool loan terms vary based on the lender but are typically between 24 and 60 months. Some can extend up to 144 months.

These personal loan APRs start at 3.49%. Your APR will depend on the lender along with several factors, such as your creditworthiness, income and debt-to-income ratio. The amount you borrow and the loan term may also impact your APR.

The best interest rates generally go to the people with good to excellent credit, which is a FICO credit score of 720 to 850.

You can ask lenders about pool financing for poor credit. In general, however, it is inadvisable to finance a pool using a bad credit loan. That’s because you’ll see high interest rates that will make your pool much more expensive. Your best option may be to use a secured loan, as interest rates can be lower when you provide collateral.

You may be able to recoup 43% of the costs of installing an in-ground pool, according to some estimates.

¹*Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates without AutoPay may be higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 4.99% APR with a term of 3 years would result in 36 monthly payments of $299.66.

²The Annual Percentage Rate (APR) is the cost of credit as a yearly rate and ranges from 5.99% to 29.99%, which may include an origination fee from 0.99% – 5.99% that is deducted from loan proceeds. Any origination fee on a loan term 4-years or longer will be at least 4.99%. The loan term and the APR offered will depend on your credit score, income, debt payment obligations, loan amount, credit usage history and other factors. Additionally, the APR offered is impacted by your loan term and may be higher than our lowest advertised rate. Requests for the highest loan amount may result in an APR higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest rate.

Best Egg loans are unsecured personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC. Equal Housing Lender. “Best Egg” is a trademark of Marlette Funding, LLC. All uses of “Best Egg” on this site mean and shall refer to “the Best Egg personal loan” and/or “Best Egg on behalf of Cross River Bank, as originator of the Best Egg personal loan,” as applicable. Loan amounts generally range from [ps name=’personalloan.35.min_loan’]-[ps name=’personalloan.35.max_loan’]. Offers up to $50,000 may be available for qualified customers who receive offer codes in the mail. The minimum individual annual income needed to qualify for a loan of $50,000 is $130,000. Borrowers may hold no more than two open Best Egg loans at any given time. In order to be eligible for a second Best Egg loan, your existing Best Egg loan must have been open for at least four months. Total existing Best Egg loan balances must not exceed $50,000. All loans in MA must exceed $6,000; in NM, OH must exceed $5,000; in GA must exceed $3,000. Borrowers should refer to their loan agreement for specific terms and conditions. Your verifiable income must support your ability to repay your loan. Upon loan funding, the timing of available funds may vary depending upon your bank’s policies.

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