Financing & Loans for Swimming Pools: A How-To Guide


It’s no secret that people all across the country are taking out swimming pool loans in an effort to improve their quality of life and increase the value of their homes. The vast array of secured and unsecured financing choices presently available to American homeowners is largely unknown.

How to Get Approved for the Best Pool Loans

Having a swimming pool in the backyard is seen by many as the ideal way to unwind, take in some vitamin D, and spend time with loved ones. Some people like having a pool for exercise purposes. But an in-ground pool may easily cost over $50,000, so what are your alternatives? However, this is subject to the standard costs of construction materials in your area. 

Obtaining a Cash-Back Refinance

The vast majority of homeowners who decide to buy a pool do so by taking out a cash-out refinance on their property. Since rates are predicted to be so low in 2021, you may be able to refinance your loan at a lower rate then. You might get a loan to cover the cost of the pool this way. Choosing the pool financing calculator is essential here.

The proceeds from the sale of your house may be used towards almost any purpose, from paying off debt to improving your current residence, at your discretion. Whether or whether you utilise the funds to pay for a pool, an enhancement to your home, the interest may be deducted from your taxes. Find out whether this is possible by consulting a qualified public accountant.

One possible bright spot is the possibility of borrowing up to 80% of the property’s equity. If you’ve lived in your home for a while and seen its value rise thanks to the current seller’s market, you may be sitting on a sizeable chunk of equity.

You must think about the following factors before proceeding with a cash-out refinancing on your pool

A fresh mortgage application and its approval are necessary steps in the mortgage refinancing process. Your FICO score must be strong enough to qualify for a new mortgage, and you’ll need to specify your income for the mortgage lender.

Refinancing is similar to applying for a new loan since it involves starting from square one

Closing costs for a mortgage refinancing typically sit between 2 and 5 percent of the loan’s new balance. Your new mortgage payment will be higher after a refinancing since your total debt has increased.

If you are unable to keep up with the mortgage payments, you will lose your home.

A Home Equity Line of Credit as a Source of Funding

Your next option, if you need financial backing to buy a pool, is to apply for a HELOC, or home equity line of credit. A home equity line of credit (HELOC) functions similarly to a cash-out refinance in that you may borrow money against the value of your property.

An HELOC works like a credit card, giving you access to funds that might be used to pay for the installation of an in-ground pool. After then, it’s up to you how quickly you want to pay back the loan.


The fundamental advantage of a home equity line of credit is that your monthly payment is based on your entire loan balance. It’s also important to note that the interest rates associated to these loans are often low at first but might rise over time.