With Michigan summer just around the corner, we all are looking for ways to have a little fun this year. And what’s better fun than having a pool in your own backyard? Depending on your needs and preferences, we know pools can be expensive. Check out a few ways to make your swimming pool summer more affordable and achievable:
Cash Out Refinance
You can often refinance your current mortgage with a new one to get a lower interest rate and reduce your monthly payments. By refinancing your mortgage, you can even get cash back during the process. You can borrow up to 80% of your home’s equity with cash-out refinance, so if you’ve had your home for several or more years, the costs of a new pool could be covered. With extra cash on hand, you can use it to pay for your summer swimming pool.
Home Equity Line of Credit (HELOC)
A HELOC functions like a credit card but has lower interest rates than credit cards and personal loans. If approved, you can access enough credit to finance an inground or above ground pool. With HELOCs, you only pay the interest on the money you borrow, and the draw period can be up to 10 years. Since the debt is secured by your home, you can feel confident in knowing your investment is cost-friendly and quick.
Home Equity Loan
A home equity loan is similar to a HELOC, since it is a form of a second mortgage. If you decide to move forward with a home equity loan, you’ll get one large sum of money to help pay for your new swimming pool. The approval process is quicker than a cash out refinance, and similar to a HELOC, the interest on the home equity loan could even be tax deductible.
Personal Loan
Do you want to finance your pool but are wary about tapping into your home equity? Check out a personal loan. We recommend shopping around to your local bank, credit union and other financial institutions so you can get the best rates and monthly payments. Sometimes called “pool loans”, personal loans are readily available and quick – you could have funds to pay for your swimming pool within a week! Just know that personal loans typically have higher rates than other loans but are still manageable to pay off on a monthly basis.
Vendor Finance Options
If you’ve been looking at pools in your area, check with the pool companies about their own finance options. Sometimes, pool vendors partner with local banks and credit unions to provide lower rates. This could be a smart pool financing option for you and your family.
Have questions about pool financing or Michigan pools in general? Give your local experts at Blockco a call. Whether you are looking for the best pool financing option or still wondering about the best pool type for you, we’ll walk you through our pool best practices and make sure you’re up to speed before making a final decision.