As a soon to be inground pool owner, it is essential to have realistic anticipation of the cost you incur during the construction process. After doing this, conduct thorough research on the best pool financing options that suit your requirements. Besides constructing and positioning pools, pool builders respond to all their customers’ inquiries, including those that concern pool loans and financing. Majority of pool contractors direct homeowners to the best financing companies with the best pool loan rates. In this article, we focus on the frequently asked questions about pool loans. So, here’s what you need to know.
Most lending institutions provide pool loans of up to $100,000, with pool loan rates of approximately 5 to 10 percent. Practically, suppose you borrow $30,000. You will have to pay a monthly installment of $450–$500 within seven years. Qualifying for a pool loan entails having a good credit score, consistent earnings, and a positive payment history. Additionally, pool loan limits vary depending on various lending companies. Some have much lower maximum loan limits and higher pool loan rates.
Over the years, pool loan rates have stayed steady. For example, a reliable lending company such as HFS financial offer services countrywide and grant loans that go up to $250,000. Currently, there are a lot of pool online calculators that assist in estimating your average monthly payment. Nonetheless, ensure you contact your pool builder or lender to settle for the best interest rates.
In case you are wondering how much you will need to pay every month, we have practical illustrations for you. Let’s say; you have a loan of $40,000 within seven years. Your monthly installments will range from $600 to $675. Additionally, suppose you have an investment of $50,000, the monthly payment will result in $700–$850.
These are just rough estimates based on a pool loan rate of 5-10 percent. Occasionally, pool lenders offer more extended loan payment periods of more than seven years. In such a scenario, monthly installments are likely to be less. Thus, constructing an inground pool is much more practical. For instance, suppose you are eligible for a 15-year loan with a pool loan rate of 5%. You will end up paying only $395 every month if the pool loan is $50,000. Additionally, if your pool loan costs $30,000, you end up paying a monthly installment of $250. This makes the construction of an inground pool much more feasible.
For an individual to qualify for a loan, most lending companies conduct background checks of credit scores, earnings, and current assets and liabilities. Most financing companies desire to see different account types, such as mortgage and vehicle loans.
Additionally, they ensure you have a positive payment history with minimum late payments. They also check your saving ability through the accumulation of your liquid assets and large deposits. Consistent and steady earnings are also a plus in helping you qualify for a pool loan.
Primarily, most pool lenders will require the below:
Work Status: Financing institutions have to determine your employment status to determine your earnings.Amount and Sources of Income: The more income sources you have, the more pool lenders will find you eligible for a loan. Total Monthly Housing Cost: Pool lenders also have to determine your housing cost to identify your payment capability.Home Equity: The more your home equity is, the more you qualify for a home equity loan; thus, pool lenders can render you eligible for a loan. Liquid Assets: Pool lenders will qualify you for a loan if you have a high number of liquid assets.
Using your pool loan on some of your pool projects is possible and common among many pool owners. Some customers use the pool loan to cater to fencing, additional pool equipment, landscaping, and any other extras during the construction process. Most of these clients then opt to pay the loan earlier than required.
In conclusion, there are a lot of lending institutions offering pool loans. However, pool loans can, at times, be costly and lead you to debt. Thus, ensure constructing a pool is a good investment and know all the required costs. Moreover, finding the most appropriate method of financing is critical before the pool construction process. It is advisable to choose the lending company that offers the most favorable pool loan rates. Ultimately, making a large deposit payment for your loan is advisable because it will significantly reduce your monthly installments.