How to Finance a Swimming Pool
Embarking on the journey to install an inground swimming pool involves not only envisioning the refreshing oasis in your backyard but also considering the financial implication. To finance a swimming pool build, two primary types of loans often come into play: secured and unsecured. This article delves into the details these loans, providing insights for you to make an informed decision.
Secured Loans
Secured loans form a cornerstone of financing within the swimming pool construction industry. This type of loan requires collateral, typically in the form of your home, to secure the funds. The collateral serves as a guarantee for the lending institution, allowing them to claim the property if the borrower defaults on the loan.
Firstly, secured loans often come with lower interest rates compared to unsecured alternatives. This is due to the reduced risk for the lender. Secondly, the repayment periods for secured loans tend to be more flexible, providing borrowers with extended timelines to pay back the borrowed amount.
Unsecured Loans
In contrast, unsecured loans do not require direct collateral, making them a riskier proposition for the lender. Interest rates on unsecured loans are generally higher, and repayment terms are shorter. Most lenders cap unsecured loans, reflecting the increased risk they undertake.
To navigate the financing landscape for your swimming pool project, it is advisable to assess your home equity for eligibility for a home equity line (secured loan). Additionally, reaching out to lending institutions to understand their rates and programs is crucial. Researching institutions offering unsecured loans is equally essential to ensure that the loan amount aligns with your project requirements
Considerations for Increasing Home Value
Beyond the financial aspects, it’s important to consider the potential increase in property value that an inground swimming pool can bring. Most lending institutions factor in the added value of a swimming pool when evaluating loan applications. A well-maintained pool can enhance the overall marketability of your home, making it more appealing to future buyers if you decide to sell.
Understanding the difference of each loan type, coupled with considering the potential increase in property value, empowers you to make informed decision when looking to finance a swimming pool. Contact your local Nexus Pools Dealership today to get started on your pool journey.
The information provided in this article is in no way to be recognised as advice or recommendation. Always seek independent advice from a legal or financial professional.
