Modifying your backyard into a chill spot through pool construction can be costly. An inground pool can cost you up to $100,000 depending on the type of pool you want. Nonetheless, these massive costs should not intimidate you. At present, there is a broad spectrum of pool financing options. Thus, you can quickly turn your pool dreams into reality. One of the main ways homeowners finance their pools is through a cash-out refinance. Homeowners can now use their mortgage to borrow pool loans. So, if you have an existing mortgage, consider adding a pool in your home before you complete paying the construction loan.
Using the cash-out refinance to pay for pool construction #
One of the ways to include a pool in your construction loan is through a cash-out refinancing. How does this work? Suppose you have an existing mortgage of $600,000, and you have completed a payment of $300,000. If you want a pool loan of $40,000, your new mortgage will be $340,000.
Typically, your lender includes the pool loan in the construction loan. This financing technique is beneficial to homeowners desiring to construct a pool. When you apply for a new loan on top of your current mortgage, the loan gets processed much faster. Remember, your lender already has your credentials and financial background.
Choose the most reliable lender #
If you want to finance your pool using an existing mortgage, reach out to your respective banking institution. In most cases, your lender will provide a favorable interest rate and the repayment period. Also, research on other lenders and identify their interest rate. Afterward, you are free to settle with the most suitable financing company.
Suppose you apply for the loan with a new financing institution, you will have to present proof of your credibility. The lender will grant you the loan based on your financial history. Additionally, they will check your credit score and payment history.
How much will you pay for the loan? #
It is advisable to find out the cost of the loan. This way, you will know whether you will pay the loan at the specified interest rate. So, it would be best if you chose a dependable financing institution. Also, search for a lender who meets all your requirements.
Using a construction loan is cost-efficient #
With so many financing options nowadays, you can always finance your loan using your construction loan. In fact, it is much cheaper to do so. Usually, your lender will offer fixed interest rates and extend your payment period. Unlike credit cards and personal loans, using a pool in your construction loan is not as costly.
Moreover, applying for such a pool loan is simple. Since the lender already has your credentials in most instances, they facilitate the loan much quicker. But always identify the most suitable pool lender that meets your needs.