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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.
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.
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.
| 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 | |
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.
| 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.
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.
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.
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.
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.
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.