Summer can be a sweltering time so it’s no surprise that plenty of people start thinking about adding a pool to their yard as a way to cool off and enjoy the weather. Although it is one of the pricier types of home improvement projects, a swimming pool can be achieved as long as you plan out how to finance it properly. For instance, while you could technically put it all on credit cards if your limit is high enough, the massive interest rate charged will add significantly to your overall costs and potentially harm your credit score. There are much better options available when looking for a swimming pool loan and good credit can make luxury more affordable. Here are some options to consider when looking to get the funds you need for summertime projects.
Possible Routes for Pool Loans
Home Equity Lines of Credit (HELOC)
A HELOC loan is a way of extracting your home’s equity in a controlled and more easily repayable manner than the lump-sum method used in a normal home equity loan. With a HELOC, you are provided with a sort of credit card. When you use this card, the amount of money you spend is drawn from your homes equity. Since you only have to repay or pay interest on the amount you spend, the result is a more manageable line of credit that is excellent as a form of swimming pool loan or for any other home renovation projects.
Mortgaging your home can produce the funds necessary to install a swimming pool but not everyone can or should get one. If you plan on staying in your home for over six years or have managed to develop a large amount of home equity in a short period, then a second mortgage can be a good way to obtain the money necessary for adding a pool to your property. Otherwise, you will be better served using one of the other methods described here.
An unsecured loan is best used when you don’t have the ability to obtain a HELOC or a second mortgage. Since these loans aren’t based on your home’s equity, much more emphasis will be placed on your credit score and the interest rate will usually be higher than the other options here. Lenders also tend to have caps on how much they will give out in an unsecured loan, so the loan on its own may not be enough to pay for all of your pool installation expenses. Working with a local credit union you have an existing relationship with is often the best way to get an unsecured loan most suited to your needs.
Pool Loan Rate Options at LUSO Federal Credit Union
LUSO Federal Credit Union offers two pool or spa loan products that are specially designed to enable homeowners to enhance their property effectively and successfully. The two primary loans offered for this purpose are:
- A Pool/Spa Unsecured Loan: Loan amount ranges from $1,500 to $20,000 with a 5 year term, 7.990% interest rate, and 8.151% APR.
- A Pool/Spa Secured Loan: Loan amount ranges from $20,000 to $50,000 with a max term of 10 years, interest rate will vary. Call us for details!
Feel free to contact our LENDING HOTLINE at 888-848-5876 for more information.