The addition of a pool to your property can increase its value, but it will not be inexpensive. Depending on the size and complexity of the pool, the installation of a swimming pool could cost between $30,000 and $60,000.
If the funds are not promptly available, you have the option of including them in your mortgage or obtaining a new loan.
Pool loan repayment calculator
Input the anticipated loan amount, interest rate, and term for your pool loan, and the pool loan calculator will calculate the total interest and monthly payments.
How much does a swimming pool cost?
According to experts, the cost of a swimming pool ranges from approximately $50 to $125 per square foot, with an average price of approximately $35,000. The price of a pool will vary depending on its dimensions, installation type, and material composition.
The following is a breakdown of the estimated material costs for a 14-by-28-foot inground pool:
- Vinyl: $36,000
- Fibreglass: $46,000
- Concrete: $51,000
Additions such as cascades, decks, and a hot tub can cost a few thousand dollars more if you wish to increase the level of luxury.
Pool loan calculation examples
Personal loan interest rates are able to range from 6% to 15%, based on the quantity borrowed, the length of the loan, and the borrower’s credit rating. Considering various interest rates, financing terms, and loan amounts, the table below details the potential monthly and total costs associated with purchasing a pool.
What is the most efficient way to fund a swimming pool?
Your current financial situation will determine the pool financing option that best fits your needs. Home equity loans characteristically have lower interest rates than other forms of loans, and the interest might be tax-deductible. If you are comfortable using your home as collateral, a home equity loan could be a viable option for you. However, if you are unable to make your mortgage payments, you place your home at risk of foreclosure.
If you would rather not use your home as collateral for the loan, you could instead consider obtaining an unsecured personal loan. If your credit score is in the range of decent to excellent, which is greater than 670, you have a good chance of qualifying for a competitive APR. You also have the benefit of a fixed payment schedule, so you will always know the exact date on which the remaining balance of your pool will be paid off.
What sort of credit score is required to finance a swimming pool?
It depends on how much money you need to borrow. If you wish to borrow a substantial quantity of money, your credit score must be considerably higher.
For example, if you want to finance a pool that costs more than $50,000, you will almost undoubtedly need a credit score of at least 670. A minimum credit score of 740 is needed to qualify for the highest interest rates.
There is a possibility that unsecured personal loans will require a minimum credit score of 620, whereas methods of borrowing against house equity will typically require a minimum credit score of 670. However, there are personal loan options even if you have poor credit, but you should expect to pay high interest rates and additional fees.
Bottom line
When seeking a loan to fund the purchase of a new swimming pool, it is crucial to have a thorough comprehension of both the short- and long-term costs associated with the loan.
Compared to using home equity, obtaining an unsecured personal loan to fund the purchase of a pool can be the simplest option.
