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7 Tips To Find The Best Swimming Pool Financing Options

Are You Looking for the Best Swimming Pool Loans?

Here are the 7 key factors to consider to find the best swimming pool financing rates.

When it’s time to get pool financing, it’s good to have a few options to choose from. However, the details of swimming pool loans can make it confusing to compare several estimates. Also, many people tend to give all their attention to the loan’s rate. They ignore other factors that contribute to the overall cost.

To choose the right pool loan, be sure you compare every potential factor to make sure you are getting the best deal. Here are the things to keep in mind when comparing several pool loan estimates.

Tip 1: Know Your Proposed Pool and Budget First

Before you even seek out an estimate for a swimming pool loan, you should first know how much you will need to borrow. This can help you save time when searching for lenders and estimates. You should know exactly what type of pool you are building. And make sure you have a timeline and realistic budget for the project’s completion.

Contact pool builders and get estimates from contractors. Consider your future pool’s intended use, size, location, landscaping. Also consider additional features like fountains or monitoring devices. All these factors will determine how much the pool will cost, and therefore what kind of financing you will need.

Tip 2: Get an Estimate from a Trustworthy Pool Financing Company

If you have not yet decided on where to obtain your pool financing, there are several ways to find the right lender. Ask for recommendations from associates and similar organizations who have installed pools. While online reviews should not be the sole basis for your choice, they can be a good way to narrow down your search. The more research you do, the better your leverage will be when it’s time to negotiate.

Tip 3: Remember that there’s No Such Thing as a Free Loan

The old saying, There Ain’t No Such Thing As A Free Lunch applies to pool loans just as much as to meals. A loan may be advertised as free if there are no additional fees or requires no collateral. The use of this word, however, can be misleading. Even with so-called free loans, lending is still a business. Money is being made somewhere, so it’s best to find out exactly where yours is going.

Tip 4: Note All Repayment Terms and Closing Costs

When evaluating a loan option, make sure the repayment process is realistic for your timeline and budget. Check the estimate to see if the interest rate is locked, or if there is a prepayment penalty for paying off the loan early. Also look for a balloon payment—a larger, one-time payment at the end of the loan term. This may lower your earlier payments, but cause you to owe more at the end of the term.

Tip 5: Look at the Full Cost of the Loan

For financing companies, a loan is more than just the amount being borrowed. Loans also involve the interest rate, application fees, consultation fees, origination fees, and sometimes early payment fees. For this reason, you should consider more than just the principal amount you’re borrowing. Don’t let a single rate or fee carry all the weight of your decision!

However, just because a loan comes with additional fees does not necessarily mean it’s not a good deal. Sources like Viking Capital may charge a small fee in exchange for reduced interest rates. In most cases, this can actually benefit the borrowers and reduce the long-term cost of the loan. This is why it is good to calculate all potential costs of a pool loan.

Let’s say, for example, you have two different pool loan options, and are wondering which one provides the lowest costs and the greatest value over time.

  • Option 1 is a loan of $50,000, at 8.99% interest for 15 years and no other fees. This amounts to a payment of $507 per month.
  • Option 2 is also a loan of $50,000, but at an interest rate of 6.49% for 15 years, with a fee of $699. In spite of the added fee, the payments amount to $435/month.

By choosing Option 2, you would save $72 per month or $864 per year. In this case you save back the $699 in under 10 payments. You would also continue to save $72 per month as long as you hold the loan, saving $864 per year going forward.

In comparison, Option 1 would require you to pay off the loan completely in nine months to break even.

A long-term mindset, which considers all parts of a loan and how much you will pay during the full life of the loan, can help you make the right choice.

Tip 6: Compare the Offer with the Discussion

Make sure that the loan estimate is appropriate for what you have already discussed with the lending company. Ask them about any details that seem different from what you were expecting. This includes an interest rate that is widely different from what was quoted, an incorrect principal amount, or if the repayment term is too long or short.

Tip 7: Look at the Value of the Loan

With any loan, the borrower is looking to get a great value. This means that you consider the loan to be worth (or more than worth) the total amount you are paying for it. In some cases, the value not only includes the money being borrowed, but any additional services that may come with it.

For example, if the lender offers some kind of consultation, automatic payments, and other perks, that may be worth an added fee. If there is a prepayment penalty, that may reduce the value of the loan for you.

Find the best pool loan for your needs

The right choice in pool loans will help ensure that you are not only getting the deal that you want, but the pool that you want. Don’t wait any longer to raise your property’s value and appeal: contact Viking Capital today to get started with a pool loan that works for you.

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FREE Loan Consultations and payment details for all applicants!

Example 1

Loan amount $40,000
Rate 5.49%
Term 15 Years
Monthly payment $327/mo.

Example 2

Loan amount $50,000
Rate 7.99%
Term 20 Years
Monthly payment $418/mo.

Loan Terms

* Loan terms and availability vary based on borrower qualifications and are subject to change without notice. Monthly payment amounts are for demonstrative purposes only and are not guaranteed to match final payment amounts for all borrowers. Your Viking Capital Loan Representative will go over all your loan options and their respective terms and payment amounts.

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*Eligibility requirements:

The applicant or co-applicant (or Family Member*) is active duty, military retiree, reservist, or veteran.  Branch of service: Air Force, Coast Guard, Army, Navy, Marine Corps or reserves for these branches. 

Family members must be “lineal” (spouse or direct-line ancestors and descendants. Includes family by adoption and marriage).