Home improvement projects are on the rise. There has been a 60% increase in demand for house professionals for improvement and installation services since 2020-21.
When it comes to a home upgrade, you may look to upgrade your kitchen, home interior, or backyard. And the most common improvement in the backyard is a pool installation.
Swimming pool installations are expensive. If you want to jump on the bandwagon and get a pool for your backyard, here are some financing options you can consider for your swimming pool installation project:
An Unsecured Personal Loan
These loans don’t usually require collateral from your end but they do have high interest rates.
You can get an unsecured personal loan from banks, credit unions, and most swimming pool companies offer them as well with a financing partner.
Qualifying for these loans can be a tough process as these lenders will look for high credit scores. The lower your credit score, the higher the interest you’ll have to pay.
Cash-Out Refinancing Option
This option means you can take out a new mortgage amount that’s much more than the outstanding balance on your current mortgage. This way you’ll also see a difference in cash.
You’ll be able to refinance at a lower interest rate than your current mortgage. Also, keep in mind that in this case interest rates are typically fixed and tax-deductible, and you’ll have to pay a fee for this loan option.
A HELOC Financing Option
This is a revolving line of credit on which you can take out a loan based on your home’s equity. The lender will appraise your home’s value, debt history, income, credit history, etc., and determine your credit limit.
You’ll find these loans with varying interest rates. Also, you’ll have to pay fees for the appraisal and check the costs associated with the loan.
These loans are highly competitive. So, you may want to research different lenders to ensure you get the best rate possible.
A Home Equity Loan
This loan is also known as a second mortgage. This loan includes a principal amount with a fixed interest rate that you’ll have to repay in the next 10 to 15 years. The amount of the loan will depend on the equity of your home and that’s the amount you’ve paid off.
You’ll get a lower interest rate with this financing option than any other financing option like personal loans.
You’ll need to remember that the interest rates in this loan are also tax-deductible and you may have to pay some kind of fee depending upon your lender.
Get Financing Support With Swimming Pool Contractors In McAllen
We are partnered with Viking Capital to help you finance your swimming pool installation project. Visit our website to learn more about our affiliations and services. You can also get in touch with us to get an estimate on your project.