Learn How to Get Swimming Pool Financing with a Second Mortgage
As a premiere second mortgage specialist, BD Nationwide spends a lot of time helping homeowners finance home improvement projects with affordable payments from reputable finance sources.
One of the most popular home improvement use of funds in the spring and summer seasons is adding a new swimming pool. Shop from a wide range of 2nd loan programs for you to choose from when considering swimming pool construction.
Depending upon your needs, you should consider both options for both open-end lines of credit and closed-end second mortgages.
Finance a New Pool with an Affordable Home Improvement Loan!
There are several types of home improvement loans to choose from: Select from interest only, or principal and interest with lump-sum cash out equity loans. 1oo% HELOCs and equity loans are available with no equity needed for qualifying borrowers who meet the credit guidelines.
Diverging from traditional mortgage lenders, banks and credit unions, our focus lies exclusively in the realm of home renovation and swimming pool financing. This specialization empowers us to deliver tailored, hassle-free solutions that align with your unique requirements. Adapting to the economic circumstances of our clients allows us to offer the most competitive and flexible options, leading to significant differences in terms of fees, loan terms, pre-payment penalties, and the maximum loan amount for which you qualify.
Boasting the lowest home equity rates, extended terms of up to 30 years, BD Nationwide seamlessly connects consumers with exceptional spa and pool financing with outstanding service from top lenders. Our commitment is to provide the financing you need for creating lasting memories, easily and affordably.
You have many payment options with terms ranging from 15-30 years. BD Nationwide will help you shop lenders for the best offer to finance pool construction without requiring you to refinance current home mortgage. The swimming pool cost construction ranges from $20,000 to $200,000 depending on the scope of the job and the cost of pool construction in your region.
The overall expense of constructing your pool hinges on several factors, with geographical location being a significant determinant. Variables such as size, shape, materials used, and additional features like fencing or landscaping will also play a role in influencing the total cost.
Unsurprisingly, more luxurious pools tend to be pricier. If you aspire to have an expansive, high-end pool with waterfalls or spillover features, many unsecured loans might fall short of covering the entire expenditure. The secured home improvement loan amounts will range from $20,000 to $50,0000.
Contractors can furnish you with an estimated cost for your pool, but the final price may be subject to fluctuations based on labor and material expenses. Whether you are eyeing a budget-friendly above-ground pool or a customized in-ground pool with various enhancements, it’s advisable to seek quotes from licensed contractors before applying for a home equity loan or cash out refinance.
5 Reasons to Finance a Swimming Pool with a 2nd Mortgage Loan
Adding a swimming pool to your property can significantly enhance your home’s value and provide years of enjoyment. However, building a pool is a substantial financial commitment. If you’re considering adding a pool but don’t have the cash on hand, using a second mortgage to finance the project can be an excellent option. Here are five reasons to finance a swimming pool with a second mortgage.
1. Access to Significant Funds
A second mortgage allows you to tap into the equity you’ve built in your home, giving you access to a large sum of money. Building a pool is a costly project, often ranging from $30,000 to $70,000, depending on the size, design, and materials. By leveraging the equity in your home, you can cover these expenses without depleting your savings or relying on high-interest financing options. Whether you choose a home equity loan for a lump sum or a home equity line of credit (HELOC) for flexibility, a second mortgage can provide the financial resources you need.
2. Lower Interest Rates Compared to Other Loans
Because second mortgages are secured by your home, they generally come with lower interest rates than other types of financing, such as personal loans or credit cards. This makes them a more affordable option for financing a large project like a swimming pool. Lower interest rates mean you’ll pay less over time, making it easier to manage monthly payments while also keeping long-term costs in check.
3. Potential Increase in Home Value
Installing a pool can increase your property’s value, especially in warmer climates or desirable neighborhoods where pools are seen as a luxury amenity. While not all home improvements offer a strong return on investment, a well-designed pool can enhance your home’s appeal to potential buyers. By using a second mortgage to finance the pool, you’re investing in your home’s equity, potentially making it more valuable when it’s time to sell.
4. Flexible Financing with a HELOC
If you opt for a home equity line of credit (HELOC), you can take advantage of flexible financing. A HELOC loan allows you to withdraw money as needed, which is ideal for a swimming pool project where costs can vary over time. You only pay interest on the funds you use, and if the project ends up costing less than expected, you won’t be burdened with extra debt. This flexibility gives you more control over the financing process and can help you stay within budget.
5. Tax Deductible Interest Potentially
In some cases, the interest paid on a second mortgage used for home improvements, such as installing a swimming pool, may be tax deductible. The IRS allows deductions on mortgage interest if the funds are used to “buy, build, or substantially improve” the home securing the loan. Be sure to consult with a tax advisor to determine if you qualify for this deduction. If you do, it can lower your overall costs by reducing your taxable income, making a second mortgage an even more attractive option for pool financing.
Financing a swimming pool with a second mortgage can be a smart financial decision for homeowners who want to enhance their property without straining their finances. With access to significant funds, lower interest rates, flexible financing options, and potential tax benefits, a second mortgage provides an affordable and manageable way to fund your pool project. As always, be sure to evaluate your financial situation and ensure that you can comfortably make the payments before moving forward with this option.
Our second mortgage loan programs offer you a competitive interest rate for the life of the loan. No mortgage insurance is required with any of our 2nd mortgage products. You can finance the closing costs, so that you do not have to come out of pocket at all.
