Do you wish there was some family activity that would help everyone bond together, relax, and just have a good time?
An in-ground swimming pool for the family can be just what you are looking for. Now you might be thinking that it will cost you a fortune and hence, is not something you can afford. But, wait a minute. You can avail swimming pool financing to get the swimming pool you need without facing any financial hardship at all.
Why Take a Loan?
A swimming pool is an investment. The price of building an aesthetic and effective swimming pool for your home is definitely going to exceed your home-improvement budget. For those who do not have the funding immediately available to them, obtaining a loan is one of the many avenues for pool financing that are now easily available. Don’t let the price stop you from fulfilling your dream of owning a swimming pool by taking an unsecured loan!
Unsecured Loan vs. Secured Loan vs. Home Equity Loans
A secured loan has a collateral attached with it, to secure the wealth of the person or institution lending you the money. If you, someone who has taken a loan, default on paying it up, the lender has the right to claim and take possession of your agreed collateral till you pay up.
An unsecured personal loan is one that has no collateral attached to protect it. For a swimming pool, unsecured loans are usually the way to go. If you are unable to repay the loan as agreed, your property will not be taken from you.
Another option to consider is a Home Equity Loan. This is a type of secured loan in which the equity of the borrower’s home is used as collateral. The amount of the loan is determined by the property’s value which is determined by the lending institution’s appraiser.
Ways to Finance Your Loan
Loans are never free, but their rates and terms vary depending on the lender. Which is why it is always best to look into various ways to source your loan!
1. Online Lenders: There are some online loan lenders that give you varying quantities of loans, typically from $1000-$100,000. You have to be very smart about this, however, to make sure your information remains safe, so always opt for well reputable online lenders, no matter how expensive their rates.
2. Banks: One of the most considered option, banks offer home-improvement loans as a standard. It would be smart to familiarize yourself with all the banks and their offers to eventually opt for the best option for you. If you are confused, Custom Finance Solutions has got your back!
3. Credit Unions: Join a credit union. Since it aims to serve its members, they give loans on lower fees and interest rates as compared to normal banks. Even with poor credit, your credit union will work towards a loan with special terms for you.
4. Credit Card: This works only if you have a credit card with high limits. The rates are much higher, but on the plus side, the loan is unsecured.
5. Home-Equity Loan: As discussed earlier, you can take this form of a secured loan and instead of having property as collateral, you can have the value of your property as collateral. This reduces the risk of being evicted and losing your home.
6. Savings Account: Your personal savings account serve as a source to help you secure a loan for your pool. You cannot take a loan larger than your account balance though, as that is what serves as your bank collateral.
7. Borrow against your 401(k): If all else fails, you can always fall back on your 401(k). The only one you’ll be paying back is you! With the requirement of needing to be paid back in full within five years, you will be making monthly, or quarterly, payments to repay your account, along with the interest. The interest rate in this case is the prime market rate +/- one-two percentage points.
Important Considerations
Before seeking a loan, determine exactly what type of pool you want to build, and exactly how much you will need for it. It will help you look for the right financing options. By selecting the right financing option for you, you can easily get the pool of your dreams without breaking your bank. Be smart, and wait no longer.
Sign up at Custom Financing Solutions to help you make your dreams come true!
[…] heavily on the client’s pocket; to ease it, many contractors have themselves started to provide financing options for a pool and other home renovations. Do you? If not, partner with CustomFin and be the one to make your […]