Guide to Pool Financing

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Everyone longs to take a plunge.

As more homeowners install pools across the country, swimming pools are becoming increasingly popular. In turn, buyers are searching for homes with pools. The number of in-ground residential swimming pools rose by more than 20% between the previous year and 2020.

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According to the National Association of Realtors, a pool-equipped house sells for $27,199 less than a similar home without one. But, pools aren’t always a good investment because they can cost more than $50,000 to install.

What is a pool loan and how does it work?

Banks and other lenders may have advertised “swimming pools loans”, which are usually unsecured personal loans that are available for almost any purpose.

Personal loans typically have higher interest rates that other types of financing. We recommend that you research several types of financing before financing a pool.

Whatever financing option you choose to use, ensure you fully understand the commitment and all costs involved in pool financing. You may need to use your house as collateral for financing. If you don’t repay the loan, you could lose it. Loan calculators are a great way to estimate the cost of a large purchase such as a swimming pool.

Financing Your New Pool: The Best Ways

An in-ground pool can be a costly project. Many homeowners don’t have the funds to do it. There are many options for financing a swimming pool.

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  • Home equity loan

You can borrow against your home equity with a home equity loan. This is also called a second mortgage. The amount you can borrow will depend on the value of your home and how much you owe on your original mortgage. This loan is a good choice if your home has a lot of equity. However, it might not be an option if you just bought your home.

Justin Goldman, co-founder and CEO of RenoFi, an online financial platform that works with lenders to provide renovation loans, said, “These loans often don’t provide enough funding to cover the entire cost of a pool to new homeowners.” According to market conditions, size and materials, pools can cost as much as $50,000. This means that a homeowner who has paid $80,000 in principal could only obtain a $40,000 loan.


The home equity line-of credit (or HELOC) is a flexible way to borrow against your equity. A HELOC is not a fixed-rate loan that gives you a lump sum. Instead, it’s a revolving credit line. A HELOC allows homeowners to borrow money and then use it as needed, much like a credit card.

  • Refinance with cash-out

A cash-out refinance can be a type or home mortgage. Refinance your existing mortgage by getting a new one with a greater value than the amount you owe on your home. The cash difference is given back to you as a lump sum that can be used to finance a pool. This can be a cost-effective financing option if you have sufficient home equity.

A cash-out refinance can be a good option if you are already looking to refinance. It doesn’t require you take out another equity loan. You just need to refinance your existing mortgage. Goldman said that closing costs can be expensive so ensure you refinance to a lower rate. Rates have increased significantly in 2022. Refinancing to obtain cash could cost you more long-term if the total loan is subject to a higher interest rate.

  • Personal loan

You don’t need to put up your house as collateral because these loans are usually unsecured. Personal loans don’t usually require collateral and come with higher interest rates. Before you decide to take out a personal loan, it is worth looking into other financing options.

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How to Apply for a Pool Loan?

Your personal credit score is the most important factor when applying for pool financing. Your credit score will determine how much interest you are likely to get. Lenders offer the best terms to borrowers with credit scores between 700 and 800.

The type of pool financing you choose will determine the length of your loan term. Many lenders will allow for a term of up to ten years. Make sure you account for all costs when financing your project.

  • Pool Loans vs. buying outright

The long-term cost of a swimming pool project will rise if it is not funded. A large down payment can reduce the interest that you pay over the life of the loan. This will make financing less expensive.

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After the pool has been installed, it is important to set aside money for any repairs. Keep in mind that pool maintenance costs can add up each year. Although a loan may be available to help with the initial installation, you will need to pay thousands each year to maintain it,” Goldman said. Swimming pools require a lot of maintenance each year. This is something you should keep in mind as you plan your summer.