What You Need To Know About Financing A Swimming Pool Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Rades/Shutterstock July 01, 2022 Raija Haughn is an associate writer for Bankrate.com specializing in personal and home equity loans. She is passionate about helping people make financial decisions that will benefit them long term. Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information. Bankrate logo

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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Adding a swimming pool to your backyard can boost your property value and your enjoyment of your home. However, you shouldn’t dive into pool ownership without careful thought — and some money to spend. In addition to their upfront cost, swimming pools require ongoing maintenance and care. Swimming pool costs vary depending on your location, yard, and pool dealer’s service packages. This means the price of a swimming pool project might be even higher than what your pool dealer originally quoted. If saving tens of thousands of dollars to install a pool in your home isn’t feasible, financing swimming pool costs is an option. A swimming pool loan lets you pay off a pool build over time.

Key statistics

The for an above-ground pool is around $11,000, while an in-ground pool can cost $45,000 to $85,000 or more The average maintenance cost of a pool is between $3,000 and $5,000 a year. own swimming pools in the U.S. Homeowners pay an average of $300 a year in electricity for swimming pool pumps. Installing a swimming pool could increase your water bill by $60 to $120. In-ground pools are 3.5 times more expensive than above-ground pools

In-ground pool costs

There are a lot of associated with swimming pool installation, including the size of the pool, the material you choose, the type of water you use and how often maintenance is performed. You should do your own research and consult with a swimming pool contractor before making any decisions. Here is a breakdown of the various costs associated with in-ground pool installation and maintenance.

Cost by material

Material Installation cost Fiberglass $18,000-$65,000 Concrete $29,000-$60,000 Vinyl $25,000-$45,000

Cost by size

Size Square feet Average cost Small 10×16 $14,560 Medium 14×20 $25,480 Large 18×30 $49,140

Yearly maintenance cost

Material Average cost Fiberglass $375+ Concrete $2,750+ Vinyl $1,325+ In addition to the cost of the pool itself, factor in the cost of renovations around the pool. This could include fencing, a deck and a cover for the off-season. You should also factor in labor costs if you intend to hire someone to install the pool. The average labor costs for building a pool are between $5,000 and $30,000 depending on the specifications of the project and the materials used. Installing the pool yourself could save you anywhere from $6,000 to $10,000. If you decide to install the pool yourself, make sure you do adequate research, have the tools and skills necessary and have all the necessary permits. Once you have determined the overall cost of your pool installation, think about how you want to finance the project. Several financing options are available, including home equity loans and lines of credit, personal loans and swimming pool loans.

What is a pool loan and how does it work

Because installing a swimming pool is expensive, you may want to look into swimming pool loans. Once you figure out how much money you’ll need for your new swimming pool, you can to find a personal loan that works best for you. Once you are approved for the loan, you’ll typically receive all of your loan funds upfront and repay the loan over a number of years with interest. Your income and FICO credit score will be major factors in determining the interest rate and monthly payment of any loan you receive.

4 ways to finance your new pool

Due to the high initial investment required for a new pool, many homeowners opt to borrow money for the project and pay it off over time. Here are some of the best ways to finance your new swimming pool if you don’t have the cash to pay for it upfront.

Home equity loan

A lets you borrow against the value of your home and use it as collateral, thus helping you secure a competitive interest rate. Home equity loans work like personal loans — they come with a fixed interest rate, a fixed repayment timeline and a fixed monthly payment that will never change. Using your home as collateral does present some added risk. For example, your home will be subject to foreclosure if you stop making your home equity loan payment, which is not the case with personal loans. You can typically only borrow up to 85 percent of your home’s value minus any mortgage payments, so this option will only work for consumers with a lot of untapped property equity. Info Key takeaways Takeaway: Using a home equity loan for financing swimming pool projects offers low interest rates but puts your home at risk if you’re unable to pay the loan back.
Who this is best for: This type of swimming pool loan is best for people who have significant home equity and are looking for fixed monthly payments.

HELOC

A (HELOC) is . With a HELOC, however, you get access to a line of credit that you can borrow against as needed — typically with a variable interest rate. Because your rate may go up and down due to rate fluctuations in the market and the amount you borrow isn’t set in stone, your payment can also change throughout the life of the loan. As with a home equity loan, using a HELOC to finance your swimming pool does come with a few disadvantages. A HELOC uses your home as collateral, meaning you risk foreclosure if you don’t make your payments. You are also subject to the same equity limits, meaning a HELOC is only a good option for borrowers with significant amounts of home equity. Info Key takeaways Takeaway: HELOCs offer more flexibility when financing swimming pool expenses, especially if your pool dealer doesn’t offer an all-inclusive package.] Who this is best for: A HELOC is best for homeowners who have substantial equity and are looking for more flexibility with their monthly payments.

Personal loan

The most popular option among pool loans is the tried-and-true . A personal loan lets you borrow a lump sum at a fixed interest rate and with a fixed repayment period. This means you’ll be charged a regular monthly payment that will never change. Another benefit is that you’ll know exactly when you’ll become debt-free. Personal loans are unsecured, meaning you don’t have to put your home down as collateral to get approved. If you have very good or excellent credit — or any FICO score over 740 — you may even be able to qualify for a pool loan with a fixed interest rate as low as 5 percent. Personal loans also often come with low or no fees, making them an inexpensive option compared to other swimming pool loans. Info Key takeaways Takeaway: Personal loans allow for financing swimming pools at a pre-set loan amount, and it’s a loan option that doesn’t put your home on the line if you default.] Who this is best for: A personal loan is a great option for someone with good credit but not a lot of equity in their home.

Swimming pool loan through the dealer

Another option to finance your swimming pool may be a loan through the dealer you use to purchase it. If you do opt for dealer financing, carefully read the terms you’re agreeing to, and be prepared to pay higher rates. Still, if you’re not able to qualify for a personal loan or financing using your home’s equity, this may be the only option for financing your swimming pool. Info Key takeaways Takeaway: Financing swimming pool costs directly through your pool dealer can be a convenient but higher-cost option.] Who this is best for: A swimming pool loan is the best option for someone who isn’t able to qualify for a home equity loan, HELOC or personal loan.

Other considerations when financing a swimming pool

Before you apply for pool financing, make sure you are aware of these: Monthly payment: Consider speaking with a few pool contractors to get a ballpark estimate of your final price, then play around with a to see how much your monthly payment may be. If you want to pay your loan off quickly, you’ll need to pay more each month. If you plan to spread your payments out over the long haul instead, you may be able to pay a smaller monthly amount. Repayment term: If you plan on selling your house in a few years, you’ll likely want to avoid a long loan term. You should also know that a home with a pool may be worth slightly more — but it may also appeal to a smaller group of buyers since not everyone wants a pool in their backyard. Debt consolidation: If you already have several credit cards and bills, you may want to consider eventually getting a so everything can be under one payment. Consider how this future action may affect your current boat financing plans.

Pros and cons of installing a swimming pool

Pros Cons Can increase the value of your home by 7% Requires regular maintenance Variety of size and shape options Costly investment Fun and family-friendly summer activity Liability concerns/Required safety measures Convenience/ability to have a staycation Pools can attract animals and mosquitos Enhances home aesthetic Potential damage from weather

Frequently asked questions

As with most things, there’s not a single best loan to get for a pool. A personal loan could be a good bet if you need a large loan and you have a good credit score, while a home equity loan or HELOC could be better if you’re looking for the lowest interest rate possible and you don’t mind using your home as collateral.

What credit score is needed for a pool loan

Personal loans are available even for people whose credit scores need work (below 640). Just remember that the lower your credit score is, the higher your interest rate will be and the lower the loan amounts you’ll qualify for.

How many years is a typical pool loan

With a personal loan or home equity loan, you can generally target the length of time to pay back your loan. This will usually be between two and 10 years. The longer the loan, the lower each month’s payment will be but the more interest you’ll pay overall. With a HELOC, you’ll generally be able to draw from your credit line for 10 years, then pay back what you borrowed over 15 to 20 years.

Learn more

SHARE: Raija Haughn is an associate writer for Bankrate.com specializing in personal and home equity loans. She is passionate about helping people make financial decisions that will benefit them long term. Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information.

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