If getting a pool for your yard has been a dream and a thought for the last few years, but you don't want to take all of your savings or a good portion to pay for it in full, see if a home equity loan may be the solution for you. There are many benefits to using a home equity loan instead of other types of financing options, and why this may be the best choice for your pool financing. Talk with your mortgage company, and other home equity financing companies about the following things.
A Better Interest Rate than Your Current Mortgage
If you bought your home when mortgage rates where high, then chances are after you borrow the money and have a new mortgage, you may be able to get a lower interest rate than what you had on your original loan. This means you will be saving money on the interest that you were paying on your previous loan, and this may make a big difference when calculating your new balance.
An Affordable Loan
A high quality in-ground pool may be too much money to put on a credit card, which would have a high interest rate. Most private loans also have high interest rates, along with financing through a pool company. When you are utilizing your home equity, you are just adding some to your monthly mortgage, a loan that you were already paying, not an additional monthly loan to pay.
Adding Value and Equity
You will be adding to the home loan that you are paying, but you also may be increasing the value of your home when you put a high quality pool in the yard. This means that the risk of paying off the loan easily with monthly mortgage is low, and you are adding value to your property to help reduce the loan risk even more.
Get estimates from more than one pool contractor to see what it will cost to do what you want, and to determine what type of pool you want. Your home could be the answer to your financing questions if you want to put a pool in the backyard. Talk with your current mortgage company, and also with other financing providers to see who is going to offer you the lowest rates to take out a home equity loan, so you can pay for pool in cash and be done with.
For more information, contact a company like Frontier Community Credit Union.