How To Finance a Swimming Pool in Arizona
Swimming pools can be a great addition to any home in Arizona, especially during the hot summer months. However, knowing how to finance a swimming pool in Arizona can be a daunting task for many homeowners. Fortunately, several options are available to finance a swimming pool in Arizona.
Here we discuss some of the common and most popular ways to finance a swimming pool in Arizona so you can start creating your backyard inground swimming pool paradise.
Home Equity Loan
Home equity loans are loans taken out against the equity in your home. You may have built some equity if you have owned your home for a while. This type of loan allows you to borrow money against that equity. The interest rates on home equity loans are generally lower than other loan types, making them an attractive option for financing an inground swimming pool.
Home Equity Line of Credit (HELOC)
A home equity (HELOC) line of credit is another option for financing a swimming pool in Arizona. A HELOC is somewhat similar to a home equity loan in that the equity in your home secures it.
However, a HELOC is a revolving line of credit, which means you can borrow and repay money as needed. In addition, the interest rates on a HELOC are typically variable, which means they can fluctuate over time.
A personal loan is an unsecured loan used for various purposes, including financing a swimming pool. one can obtain a personal loan from banks, credit unions, and online lenders.
Personal loan interest rates are typically higher than home equity loans or HELOCs, but they are still lower than credit card rates. Therefore, personal loans can be a good option for those who do not have enough equity in their home to qualify for a home equity loan or HELOC.
As many of us have credit cards, they often can be a convenient way to finance a swimming pool but they are also the most expensive option. Credit card interest rates are typically much higher than other types of loans, and they can add up quickly if you cannot pay off the balance in full each month.
However, suppose you have a credit card with a 0% introductory APR offer. In that case, you can finance your swimming pool without paying interest for a certain period.
Pool Financing Companies
Several pool financing companies specialize in providing financing for swimming pools. These companies often partner with pool builders and offer competitive rates and terms. Pool financing companies typically offer unsecured loans, which means your home does not secure them.
The interest rates on these loans can be higher than home equity loans or HELOCs, but they may be more flexible regarding repayment options.
When hiring a highly reputable pool builder in Arizona, financing through them and with their partner most often is the best option and should always be considered.
A cash-out refinance is another option for financing a swimming pool in Arizona. This involves refinancing your existing mortgage and increasing the monies you already owe by taking out more.
The difference between your old mortgage and the new mortgage is provided to you in cash, which you can use to finance your swimming pool. Cash-out refinancing can be an excellent option if you have built up a significant amount of home equity and can obtain a lower interest rate on the new loan.
FHA 203(k) Loan
FHA 203(k) loans are used to finance home improvements, including swimming pool installations. The Federal Housing Administration insures the FHA 203(k) loan. It is designed for homeowners who want to improve their homes but need more cash to pay for them upfront. The interest rates on FHA 203(k) loans are generally lower than other types of loans, but strict guidelines and requirements must be met to qualify.
Ready to Learn More About the Best Ways To Finance a Swimming Pool?
At No Limit Pools & Spas in Arizona, we are here to help you get started with your backyard pool paradise. But, before we do, we know financing can often be overwhelming and a problem many homeowners do not want to deal with.
So, let us make this as easy as possible for you. Contact us so we can discuss your financing options. We are certain we can guide you in the best way. And afterward, when you are totally satisfied with your finance decisions we can start building the most amazing pool just for you from basic to luxurious. There are no limits at No Limit Pools and Spas.