Ways to Finance Your New PoolUnfortunately, our company does not offer personal pool loans at this time. If you are looking to secure a pool loan for your project, here are some of the options you can consider:
Home Equity LoanTo get a low interest rate on a loan, you can utilize the equity in your property as collateral and take out a loan against it. Similar to personal loans, home equity loans have a set interest rate, a set term for paying them back, and a set monthly repayment.
Collateralizing a loan with your property increases the danger involved. You can lose your home to foreclosure if you fail to make payments on a home equity loan, but this is far different from personal loans. Only clients with a lot of unused property equity can benefit from this choice, as most only allow you to borrow up to 85% of your home's value, that is minus the payments for mortgage. Pros
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Home equity line of credit (HELOC)
Home equity lines of credit (HELOCs) are revolving credit lines that are collateralized by the borrower's home. A home equity line of credit (HELOC) can be thought of as a credit card with special financing features. If you get the green light, you can apply for a loan large enough to cover the cost of your pool and pay it back over time.
Pros
Pros
- Withdrawals will determine your monthly payment amount, and you'll only be charged interest on the funds you actually use.
- With a usual draw time of 10 years, you can continue to use the line of credit even after the pool has been repaid.
- With a home equity line of credit, you can borrow money against the equity in your home at a cheaper interest rate than with a credit card or unsecured loan.
- If you borrow money to purchase, construct, or significantly upgrade your primary residence, the interest you pay is tax deductible.
- Home equity lines of credit (HELOCs) typically feature adjustable interest rates, meaning that your monthly payments will fluctuate.
- The result is an increase in your mortgage debt because a new mortgage has been created.
Personal Loan
A personal loan is the most popular choice among pool loans. You can borrow a certain amount of money for a set amount of time with a personal loan. Your monthly payment will remain the same at this rate. You'll also have a concrete date in mind for when you may celebrate paying off all of your debt.
Pros
The major drawback of personal loans is the extremely high interest rates they carry.
Pros
- In many cases, getting approved for a personal loan is far quicker than trying to get a home equity loan.
- You should be able to acquire the money you need within a week or so, and the application procedure should be easier.
- If you default on your loan payments but the bank doesn't have any collateral to foreclose on, you won't lose your home.
The major drawback of personal loans is the extremely high interest rates they carry.