With the current state of world affairs and the current economy more and more people are choosing to partcipate in "stay-cations" rather than going on an expensive vacation. What better way to optimize a stay-cation than with a pool in your own backyard. With a pool in your own backyard you can lounge around in the sun, take a refreshing dip all without the crowds that would be typically found at a hotel. And even with the current economy, if you don't have the ready cash, there are many ways to find pool financing.
However, first things first. Building a pool is a big investment monetarily as well as in time. Before you can begin to look at financing options it is wise to choose, or at least narrow down who will be doing the building. There are several reasons for this. First, once you have selected a builder you will have a fairly accurate quote, and therefore a fairly accurate idea as to how much money you will need (always over estimate). Builders will also be able to help you navigate the pool financing web. A good builder will be able to suggest a financing option that fits your needs, or at least know the likely-hood of securing a loan, and which lenders have better interest rates. Some builders will even be able to offer financing themselves. Do remember though, that why a builder's advice will be helpful, don't just take his word for it. Always do your own research.
When buying or building a new house many people will tie the cost of the pool in with the cost of the mortgage. While this has the easy benefit, there are several pitfalls as well. For one, you will be paying off your pool for as long as you pay off your house, which could be 30 years. This could be very expensive with the added interest. You also may be required to use your house builder's list of pool contracters. So this may not be the best pool financing option.
The other scenario involves putting in a new pool on your existing house. There are two pool financing options with this scenario: a line of credit based on the equity you have in your home, or a second mortgage. Both options have their pluses and minuses. A line of credit typically has a lower interest rate, however the interest is compounded monthly rather than yearly (as it is with a mortgage). However the interest rate of a mortgage is usually higher. Therefore it will depend on your personal credit and income when you make the choice.
Some people attempt to pay with a credit card, however most reputable pool financing companies won't accept a credit card as a method of payment as the interest payments are insane and it can indicate the persons inability to get other financing. Also it is wise to choose a lender that is familiar with pools and will be able to give you a decision in 5 or so days rather than stringing you along for several weeks.
There are many options for pool financing. Whether you choose to go with a second mortgage, a line of credit, a new home and a new pool wrapped into one, or get financing through your builder it is entirely possible to get financing to build a pool and achieve your dream if you do your research and are wise with your options. - 30462
However, first things first. Building a pool is a big investment monetarily as well as in time. Before you can begin to look at financing options it is wise to choose, or at least narrow down who will be doing the building. There are several reasons for this. First, once you have selected a builder you will have a fairly accurate quote, and therefore a fairly accurate idea as to how much money you will need (always over estimate). Builders will also be able to help you navigate the pool financing web. A good builder will be able to suggest a financing option that fits your needs, or at least know the likely-hood of securing a loan, and which lenders have better interest rates. Some builders will even be able to offer financing themselves. Do remember though, that why a builder's advice will be helpful, don't just take his word for it. Always do your own research.
When buying or building a new house many people will tie the cost of the pool in with the cost of the mortgage. While this has the easy benefit, there are several pitfalls as well. For one, you will be paying off your pool for as long as you pay off your house, which could be 30 years. This could be very expensive with the added interest. You also may be required to use your house builder's list of pool contracters. So this may not be the best pool financing option.
The other scenario involves putting in a new pool on your existing house. There are two pool financing options with this scenario: a line of credit based on the equity you have in your home, or a second mortgage. Both options have their pluses and minuses. A line of credit typically has a lower interest rate, however the interest is compounded monthly rather than yearly (as it is with a mortgage). However the interest rate of a mortgage is usually higher. Therefore it will depend on your personal credit and income when you make the choice.
Some people attempt to pay with a credit card, however most reputable pool financing companies won't accept a credit card as a method of payment as the interest payments are insane and it can indicate the persons inability to get other financing. Also it is wise to choose a lender that is familiar with pools and will be able to give you a decision in 5 or so days rather than stringing you along for several weeks.
There are many options for pool financing. Whether you choose to go with a second mortgage, a line of credit, a new home and a new pool wrapped into one, or get financing through your builder it is entirely possible to get financing to build a pool and achieve your dream if you do your research and are wise with your options. - 30462
About the Author:
Melvin Moore is a finance and swimming pool journalist who writes about financing a swimming pool
No comments:
Post a Comment