Your Dream Backyard Is Affordable With Our Easy Financing!

On a hot summer day, a dip in a cool pool feels priceless. But installing that swimming pool definitely comes with a price tag.

Pools can cost from several hundred dollars to more than $100,000, depending on the type of pool you’re installing and whether you include additional features.

Cash is the interest-free way to pay for your backyard oasis, but saving up could take years. Instead, there are a handful of ways to borrow for the project. The best pool financing option depends on the estimated cost as well as your home equity, credit and income.

Pool financing options

Personal Loans are often unsecured, meaning you don’t pledge collateral like a house or car to borrow the money. Instead, lenders consider your creditworthiness when deciding whether to lend to you. You get a personal loan in a lump sum and repay it in monthly installments, usually over a term of two to seven years.

When personal loans are best: Consider a personal loan if you don’t have enough equity in your home to cover the cost of a pool. It may also be a good choice if you need the funds fast because personal loans are often funded within a day or two of approval. And because loan amounts are fixed, they work when you have a firm cost estimate for your pool.

Home equity loans

A home equity loan is a second mortgage that you borrow in a lump sum and repay in fixed monthly installments.

With a home equity loan, you can borrow around 85% of your home’s value, minus what you owe on your mortgage. These loans have repayment terms of up to 15 years, and average rates start around 9%.

When home equity loans are best: Home equity loans work best if you have enough equity to pay for the new pool and prefer fixed payments. This option also requires a firm cost estimate because you can borrow only once.

Home equity lines of credit

A home equity line of credit (HELOC) is an open credit line that you draw from as needed during the pool installation. You can make interest-only payments during the “draw period,” which is usually the first 10 years. After that, you repay the amount borrowed for up to 20 years.

You can usually borrow up to 85% of the home’s value, minus what you owe on the mortgage. Average APRs start around 9%, but the rate varies during the loan’s lifetime.

When home equity lines of credit are best: A HELOC’s flexibility makes it a good choice if you’re concerned about surprise expenses or if the cost estimate could change.

Cash-out refinancing

With a cash-out refinance, you get a new mortgage that’s larger than your current mortgage. You use the new loan to pay off the old one and cover the swimming pool with the extra cash.

Because you’re replacing the old mortgage, you’ll have a new rate and repayment term. Common mortgage repayment terms are 15 and 30 years, and rates are often from 6% to 8%.

When cash-out refinancing is best: Cash-out refinancing works best if you need a large loan for a major pool installation. Ideally, you also get a mortgage rate that's lower than the previous one.

Steps to finance a pool

1. Determine the pool’s cost. Get quotes from contractors and decide how much you’ll need to borrow. Because options like personal and home equity loans come in a lump sum, you need a firm estimate to apply for the correct amount.
2. Compare financing options. Once you have a solid cost estimate, compare loan options up to that amount. For example, if the new pool will cost more than you can borrow in equity, then a personal loan may be a better option.
3. Compare rates. After you’ve chosen the financing option with the right loan amount and repayment structure, compare lenders to find the lowest rate.
4. Make a repayment plan. Calculate your monthly pool loan payments and see if they fit in your budget. Make a plan to pay on time each month over the entire loan term.
5. Apply. Once you’ve chosen a lender, submit an application. This step will usually trigger a hard credit pull, which will cause your credit score to dip temporarily.