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  • Mark Allen

Top 5 Ways You Can Finance Your Dream Pool

Updated: Mar 28

A glistening fiberglass pool in your backyard – pure summer bliss, right? But that cool refreshment can come with a hefty price tag. Don't let pool financing drown your dreams! Here are the top 5 ways to fund your aquatic oasis:


1. Cash-Out Refinance: Unlock Your Home's Equity

If you have significant equity in your home (typically 20% or more), a cash-out refinance could be your golden ticket. This option replaces your existing mortgage with a new one for a larger amount. The difference between the new loan and your current balance goes towards your pool project.


Pros: Potentially lower interest rates compared to other options. Fixed monthly payments for easier budgeting.

Cons: Extends your mortgage term, potentially adding years of interest payments. Requires a good credit score and home appraisal. Not ideal if you already have a low mortgage rate.


2. Home Equity Loan or HELOC: Leverage Your Home, Choose Your Payment Style

Similar to a cash-out refinance, a home equity loan and a Home Equity Line of Credit (HELOC) tap into your home's equity.

  • Home Equity Loan: This provides a lump sum of cash with a fixed interest rate and repayment term, offering predictability for budgeting.

  • HELOC: Think of a HELOC as a revolving credit line secured by your home. You can draw funds as needed, up to your credit limit, with variable interest rates.


Pros (for both): Potentially lower interest rates than unsecured loans. Home equity loan offers fixed payments for budgeting. HELOC provides flexibility for phased pool construction.

Cons: Both require good credit and use your home as collateral, putting it at risk if you can't repay. HELOC's variable rates can be unpredictable.


3. Dive into a Personal Loan: A Flexible Option for Qualified Borrowers

Personal loans are unsecured loans offered by banks, credit unions, and online lenders. They can be a good option if you don't want to use your home as collateral or don't qualify for a home equity loan.


Pros: Relatively quick application process. Unsecured, so your home isn't at risk.

Cons: Interest rates can be higher than secured loans. Shorter repayment terms can lead to higher monthly payments.


4. Pool Dealer Recommended Financing:

Many pool builders and installers offer financing options via online lenders. This can be convenient, but it's crucial to compare rates and terms with other lenders.


Pros: Convenient one-stop shop for financing and pool construction.

Cons: Interest rates might be higher than those offered by banks or credit unions. Limited loan options compared to traditional lenders.


Mid-South Perfect Pools has partnered with five online lenders to provide financing options for its customers.



5. Creative Cashflow Strategies: Save Up or Consider Alternatives

Financing isn't your only option. Consider saving up for the pool over time. This ensures you won't be burdened with debt and allows for upfront negotiation leverage with pool builders.

Remember: Regardless of your financing choice, factor in ongoing maintenance costs. Budget for pool chemicals, cleaning supplies, and potential repairs.


The Final Splash: Financing Your Dream Responsibly

Financing a pool can make your backyard oasis a reality. By carefully considering your budget, creditworthiness, and long-term financial goals, you can choose the option that best suits your situation. Remember, a pool should enhance your life, not drown you in debt. So, dive in responsibly and enjoy years of cool, refreshing summer fun!

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