Nothing feels more pleasurable than having a swimming pool in the backyard to kick away the scorching heat of the summer. But the big hurdle between you and this luxury is the outrageously high cost of construction, which might leave you broke. However, one thing is for sure, this is something worth throwing your money in. Think of the matchless euphoria a simple pool installation can bring into your life. Surely, it costs a fortune, but every good thing does. But how can you manage to finance a gigantic pool project?
You can go for loans like home equity lines of credit (HELOC), secondary mortgage, credit cards, and uncovered pool loans. Plenty of financing companies are available in your vicinity that can lend the money you so desperately need to build the swimming pool of your dreams.
Needless to say, there are black sheep everywhere even in the financing industry, waiting around every corner to entrap inexperienced clients. Here, we have rounded up essential information to help you find the best financing companies in your area. So, let’s get started, shall we?
Assess the Amount You Are Allowed to Borrow
The amount you can borrow isn’t the same from all finance companies and it varies hugely within the industry. Some of them are willing to lend a whopping $500,000, whereas others only provide $35,000 of loans. So, make sure your estimated budget matches the amount you can borrow. As long as it falls within the range, it doesn’t matter which service provider you choose to go with.
First, you would need to figure out how much you are willing to spend on a swimming pool. Having a clearer picture of your budget will allow you to select a fitting financing company faster.
Choose Reputed Company
Customers return to the service providers that they find trustworthy and disregard the ones that they had a bad experience with. The companies that are ahead of their competitors are most likely the best service providers. The reputation usually exhibits it all about their journey in the industry and how good or bad they have been performing.
Not to forget, finding information about reputed companies will be much easier than to track down anything from a fraudulent business. If you are having trouble finding the right information about a particular company, then it is a red flag.
3) Check the Interest Rate
It is the percentage amount the lender or the bank charges for lending the money to clients. You can either pay the amount all together or separately with each monthly payment, depending on the company’s policy and your financial status.
The rate differs hugely, but on average you may have to pay 4 to 5% of interest on the money for the pool project. However, some companies even charge more than 7%, which becomes an astonishing figure when compared to the price of a swimming pool.
After knowing the interest rate, you can use a pool loan calculator to find out monthly payments for convenience, so that you can budget accordingly.
Pay Attention to the Maximum Loan Term
The deadline for the loan repayment matters. Not everybody can afford the short-term loans, with fast-approaching deadlines. Make sure the company provides the option for long-term loans so that you can repay with ease.
Check the Loan Disbursing Time
It takes several days and sometimes more than a week for your loan to be approved. Before submitting your application, find out how fast they provide the payment — the faster, the better.
How Long the Loans for Swimming Pools Last?
The duration of the loan entirely depends on which type you have chosen and form which service provider you are borrowing. Usually, it ranges from 2 to 30 long years.
If you are unable to repay in the short term, home equity lines of credit loans are what you are looking for. You may have 10 to 20 years to return the payment, depending on the financing company. Whereas simple home equity loans last even longer — up to 30 years.
On the other hand, for cash-out refinance, you get 15 to 30 years of the repayment period. And 2 to 12 years for personal loans. Calculate the payments using a pool loan calculator for a better evaluation of your budget.
How to Evaluate the Budget Using A Pool Loan Calculator?
To settle the loan amount, you require smart budgeting, for which you have to analyze how much monthly payment you can manage easily. This evaluation holds paramount importance, especially when you have a strict monthly income. There are a number of ways you can evaluate the budget but using a pool loan calculator is the most convenient.
Just feed the pool loan calculator your loan amount, number of monthly payments, and interest rate to find out how much debt (incorporated with the interest rate) you need to satisfy each month. For example, if you have a total loan amount of $35,000 that you have to pay within 10 years (or 120 months) with a steep interest rate of 7.5 percent, the monthly payment would be $415.46.
This basic information from the pool loan calculator may not seem much, but it can be a huge lifesaver for people who cannot afford to miscalculate a single month’s payment. What’s more, you can play with the numbers on this pool loan calculator to comparatively analyze different loans and deals from various service providers to choose the most feasible option.
Getting a huge loan for something as luxurious as a swimming pool is a step that you must take after thinking over thousands of times. That is because once you have invested there is no turning back, and you would have to deposit the monthly payments, which can turn out to be a huge burden on your shoulders. Use a pool loan calculator to analyze the budget and make an informed decision. Plus, the tips we have rounded up for you in this article will help you find the best financing company for pool investment.