FINANCING THE POOL OF YOUR DREAMS

Welcome to possibility

The Dream: To have an inground fiberglass pool in your backyard.

The Myth: You can’t afford it.

The Reality: That fabulous backyard swimming pool oasis truly IS possible! Financing a fiberglass pool is easier than you might think, and this ebook will tell you how.

Let’s get started, and you will be in the swim in your own backyard pool paradise before you know it!

FAQs:What are some options for financing a pool?There are multiple options available to you when it comes to paying for your pool: • Out of pocket• Credit cards• Unsecured loans (home improvement loans) • Home equity loans (also known as second mortgages) • Cash-back refinancing of your mortgage • Home equity lines of credit (HELOC)

Most of these methods have pros and cons, and not every choice will be available to all pool buyers. Much like buying a house or a car, it really depends on your financial situation–how much you can put down up front, what kind of monthly payment you’re comfortable with, and how long you plan to stay in your home.

Does a pool increase a home’s value? Depending on where you live, inground swimming pools can increase your home’s value by anywhere from 6-11%. So, if your home is valued at $200,000, your investment in an inground pool may bring that value up to around $220,000.

How much does a pool cost?According to homeadvisor.com, most homeowners spend between $30,000 and $50,000 on an inground swimming pool installation, with the average cost falling right around $41,000. When you’re budgeting for a pool, it’s important to keep in mind that the pool and installation will only account for a portion of your cost–you’ll also want to factor in a pool heater, pool cover, stamped concrete or pavers, landscaping, lighting, fencing (if needed) as well as the fun extras that will make your pool really special, like slides, bubblers, and tanning ledges with ledge loungers. If you want the latest innovation, you could also look into a beach entry fiberglass pool.

Which pool is right for me? Inground fiberglass pools are available in a variety of shapes and sizes, so you’ll also want to think about how much pool you really need and how you plan to use it (exercise, social activity, relaxation, etc.)

FINANCING OPTION 1 | OUT OF POCKET

Are you a person who doesn’t like to carry debt? Perhaps you’ve stashed away funds for a dream vacation but have decided that you’d rather have the ability to have a staycation every day in your own backyard instead. If that’s the case, paying out of pocket might be an option for you. Or, you might choose to put down half or more of the final installation price and finance the rest.

Obviously, the less you finance, the less interest you’ll pay. So if you can, start stashing away any extra dollars in your budget into your “pool fund.” Even if you only have a small percentage of the total pool cost in savings, it will be a great start.

The same strategies apply to saving for a pool as saving for anything else you really want. Be disciplined. Set a budget. And visualize reaching your goal.

The Takeaway:

Take a look at your household budget and find places where you might trim a bit in certain areas, then divert those funds to your dream pool fund. The sooner you start saving for a pool, the sooner you’ll be swimming in it!

FINANCING OPTION 2 | CREDIT CARDS

Given their typically high interest rates, financing your new inground fiberglass pool with one or more credit cards might not be the best option for everyone. However,

using credit cards may be helpful to split up the various costs of your total pool installation. Perhaps you will choose to pay for the pool with a home equity line of credit and put the costs of landscaping and lighting on a low-interest credit card with perks–gift cards to home improvement stores, airline miles or cash back.

Many credit card companies offer special introductory rates to new cardholders, or zero interest for a specific period of time on balance transfers. This can be a great way to buy yourself more time to pay off a credit card purchase without paying stiff interest rates.

The Takeaway: You’ll most likely use a credit card for some portion of your overall pool project cost. To make it worth it and curb your costs elsewhere, make sure you’re getting perks that you can use from your credit card. Once you’ve made your purchase, consider a balance transfer to get zero interest for a period of time, and make sure you’re able to pay off the balance before that offer expires. And, if you can use your perks for something you would normally purchase anyway, you’ll benefit even more.

FINANCING OPTION 3 | UNSECURED LOANS Most banks will offer you an unsecured personal loan based on your credit score and your history of doing business with them, particularly if you hold your mortgage with them. However, because they’re not backed by collateral, banks will typically offer a smaller amount and a higher interest rate on these types of loans than they would on a home equity or other collateral-based loan.

Financial institutions typically stipulate how the funds can be used if you request a home improvement loan. You’ll most likely want to have an estimate in hand that shows the full scope of the pool installation project when you go in to talk to your banker about an unsecured loan for a pool.

This loan type may work for you as a supplement to other financing. For example, you may use the unsecured loan to bridge the gap between what you need and what’s available on your home equity line of credit (HELOC), but you probably shouldn’t plan on using an unsecured loan to pay for your pool entirely. If you belong to a credit union, you might find that they are more likely to offer you an unsecured loan than a traditional bank. Some online banks currently offer unsecured loans ranging from $5,000 to $100,000 and claim to offer interest rates as low as 5.99 percent with repayment terms up to twelve years with a typical repayment time averaging closer to five years. However, you’ll need pristine credit to get an interest rate that low. For most borrowers, these loans will fall in the 12-14 percent interest range and could easily go as high as 35 percent.

The Takeaway:

Personal loans can function as a piece of the total financing puzzle if other sources with better interest rates are not sufficient to finance your entire pool project. Look at offers online and also consider using a credit union.

FINANCING OPTION 4 | SECOND MORTGAGE

A second mortgage is simply borrowing against the equity you’ve built up in your home. Most banks will only offer a home equity loan against 90% of the total

equity. On closing, you will receive a lump sum at a fixed interest rate. Just like your first mortgage, you’ll have a set period of time to complete the repayment. Those terms can stretch anywhere from five to thirty years.

A second mortgage is a good option if you had a very low interest rate on your first mortgage, but rates are higher now, which means that refinancing is not your best bet. Keep in mind that you will have to pay all of the fees typically associated with originating the mortgage, such as title fees, points, appraisal, etc.

It’s important to remember though, that you’ll now have two mortgage payments to make, and that your home has been used as collateral against

the loan.

The Takeaway: A second mortgage can be a good option for you if you have some equity in your home and if you could sell it for what you owe or plan to stay in it for a while.

FINANCING OPTION 5 | CASH-BACK REFINANCING

If interest rates are lower now than they were when you bought your home, refinancing your mortgage is a great option. If you’ve built up some equity in your home, you’ll receive a lump sum at closing that reflects the difference between the new mortgage and the payoff on the old one.

Like a second mortgage, you’ll have to pay all of the fees typically associated

with originating the mortgage, such as title fees, points, appraisal, etc. But if you’ve got enough equity built up to make it worthwhile, you can pull those funds out of limbo and put them right into your brand new swimming pool!

The Takeaway:

Don’t miss the chance to refinance your home when interest rates drop. You may even be able to both lower your mortgage payment AND walk away with a check that you can put into a brand new backyard swimming pool oasis!

FINANCING OPTION 6 | HOME EQUITY LINE OF CREDIT HELOCs are a fantastic option for financing your new swimming pool. In essence, they’re

a revolving line of secured credit (using your home as collateral) that allows you to borrow against the equity in your home, but it allows you to choose your amount

and pay interest on the amount that you need at any given time.

If your home has increased in value since you purchased it–for example, you got a great deal or it was recently re-appraised for considerably more than you paid for it, you’ll have a larger line of credit available to you.

If you apply for a HELOC, the bank will take your home’s appraised value and subtract out what you owe on your mortgage. The difference will become available to you in the form of a low-interest credit line which you’ll be able to access via checks or a credit card.

There’s no penalty for paying back any or all of the credit early, and if you pay back your loan within your borrowing window, you’ll be able to use those funds

again for other purposes. The credit line is typically open for five to ten years, followed by a repayment period of five to twenty years. In the meantime, make at least

the interest payments monthly to avoid a larger debt down the line.

The Takeaway: For most pool buyers who have some equity in their homes and plan to stay in them for a while, HELOCs are the best option. You’ll have the flexibility of borrowing what you need, when you need it, and you can pay back the loan at any time without penalty.

TAKE THE PLUNGE

DreamingThe following web pages, blog posts, ebooks and videos will kickstart your imagination:

» https://www.youtube.com/watch?time_continue=4&v=Szp-dEyj3rUU

» https://thursdaypools.com/pool-idea-book-2018/

» https://thursdaypools.com/cali-beach-party-guide/

» https://thursdaypools.com/blog/2017/03/24/surround-swimming-pool-plants/

» https://thursdaypools.com/blog/2017/06/01/pool-lights/

» https://thursdaypools.com/blog/2017/08/24/water-features/

» https://thursdaypools.com/blog/2018/07/12/what-qualities-make-for-a-truly-awesome-tanning-ledge/s.com/blog

» https://thursdaypools.com/blog/pool-designs/grace-beach-entry/

» https://thursdaypools.com/blog/2017/06/19/swimming-pool-trends/

PlanningThe following web pages and blog posts will help you start planning for your new pool: » https://thursdaypools.com/blog/2013/12/09/fiberglass-swimming-pool-prices-how-much-does-a-fiber-glass-pool-cost/

» https://thursdaypools.com/pool-selec-tor-tool/

» https://thursdaypools.com/fiber-glass-pool-designs/

» https://thursdaypools.com/blog/2017/10/24/swimming-pool-myths-debunked/

» https://thursdaypools.com/achieve-your-goals-the-smart-way-in-the-new-year/

FinancingThe following online banks feature specialized offers for swimming pool financing: » Lightstream

» LendingTree

» SoFi

» Monevo

» LendingClub•

Web Resources

ABOUT THURSDAY POOLS

Thursday Pools designs and manufactures the world’s most durable and elegantly crafted fiberglass pools. We are ISO 9001 certified, which means that fiberglass pool shells are made with the highest standards and from the best quality material available. We are also ISO 14001 certified, which means we are committed to environmental stewardship.

Our one-piece, inground fiberglass swimming pool manufacturing facility is based out of Fortville, Indiana. At Thursday Pools, we aspire to be the world’s most respected fiberglass pool manufacturer and to help our customers create a lifetime of memories with their family and friends. Our innovations, commitment to quality and beautiful designs set us apart. Thursday Pools is the creator of the world’s first beach entry (or zero entry) fiberglass pool. View our exclusive designs for the Grace Beach Entry design and the Sandal Beach Entry Design.

Get a free estimate on the fiberglass pool of your dreams today. With Thursday Pools, your weekend starts early!