The idea of having the choice of jumping in a swimming pool that is in your own backyard is certainly amazing. Of course, I’m not talking about a cheap inflated kiddie pool, I am talking about those ones that cost over $25,000. Unfortunately, the pricing for this luxury is simply too big which is why most people do not like building a pool in their backyard. Most of us would use that money for something more urgent such as bills, debts, or repairing certain parts of a house.
However, I believe that swimming pools are becoming much easier to build in these last couple of years because there is a better way of financing it. In the past, most of the process had to be paid in cash which is what made building a swimming pool so impossible. But, now there is a much better way to finance yourself for such a big project.
This is the main reason that I decided to write this article. I want to help people realize your dreams by showing you everything you need to know about financing this project. Make sure you read this article to the end to understand the purpose of such financing.
Check your budget
Before making any kind of decision, it is best to see how your bank account is doing. Obviously, paying such investment upfront is almost impossible unless a person is making well over $100,000 a year.
So, the next best option is to find a loan for such an investment. But, it is always best to pay a part of such a loan upfront instead of having to pay for everything at a monthly rate. This will cut the size of the interest-rate considerably.
This is why I believe that it is very important to first check the budget before making any kind of investment. Even if a person’s budget is only several thousand dollars, it is still several times better than nothing. Those couple of thousand dollars can cut the interest-rate by half. For information about obtaining small business loans online please click here.
Unsecured swimming pool loan
For most people, this may seem like the most attractive option when looking for a way to borrow some money. Subjectively, I do not think this is a good offer, but objectively it may be good for many, especially for those that do not want to put their possessions and property at risk.
Basically, with an unsecured loan, there is no collateral if you do not pay the debt on time. However, the interest rate is much higher than any other option I will mention on this list. Other methods of borrowing money may offer you an interest rate that goes between 2% and 5%. 5% is not a small rate, but it is definitely much lower than what unsecured loans usually offer. The rates can go well over 10% and the lowest is probably around 6% or 7%.
However, if you do manage to find a company that is willing to provide you a better interest rate, it may be a great option for you to finally build a swimming pool of your dreams.
Another thing I have to mention is the fact that most companies will have a minimum limit for loans. They will not accept anything over $40,000 or $50,000. This can be problematic for some.
It is also vital to have a good credit score. Otherwise, they probably will not even consider providing services to a person with a lower credit score.
If all of this seems too complicated for you, I would suggest using an online free pool financing calculator. There are several of them that you can easily find by searching online such as the one I was able to find on this website.
First mortgage
There is another way you can make the backyard of your dreams come true. Instead of getting a loan separately for your swimming pool, you can combine the cost of installing it with the cost of your home. Of course, this only applies if you are buying a new home or building a house. This makes things much easier and more convenient because you will not have to worry about paying different bills and debts. In other words, you get everything in one bill.
However, it is not just about making things more convenient. There is the possibility that you might get a discount or a better interest rate when combining those two big projects into one. At first, cutting down 1% might not seem like a lot, but in the long run, you will save a lot of money. And by that, I mean a number that goes well over $20,000.
With so much cash, you could even build a second swimming pool.
Use your credit card
For the people that do not like getting unsecured debts or mortgages, there is one more alternative. Although, I do have to mention that it may not be the cheapest alternative. But, it is surely cheaper than an unsecured swimming pool loan. And that alternative is to just use a credit card.
Obviously, this only applies to those that have a high spending limit on their credit card. Some credit cards have no limit and some have a limit that goes up to $100,000. The best thing about using a credit card is the fact that a person does not have to worry about personally paying back the debt. The bank will use money placed on the credit card to pay back a monthly rate.
Another benefit is the fact that people with unlimited credit cards usually have a low-interest rate. In fact, interest-rate may be lower than any of the other options that I mentioned above. Although, not every bank or credit card is equal. There are some out there that may have a much bigger interest-rate which can make things a little bit more expensive.
As you can see, there are many alternatives to financing your swimming pool which makes this kind of project possible. After you do enough research, I am sure you will able to finally build the pool of your dreams.
