Installing a pool in your backyard can be an exciting prospect but it also carries a hefty price tag. With costs ranging from $50000 to over $100,000 for an in-ground pool, financing is often needed to make this major home addition achievable. When considering financing options, one key question is how long can you finance a pool loan?
Pool Loan Terms Vary by Financing Type
Pool loan terms can range anywhere from 2 to 30 years depending on the type of financing used
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Personal loans – Unsecured personal loans tend to have shorter repayment terms of 2-7 years. This translates into higher monthly payments but less interest paid over the life of the loan.
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Home equity loans – Secured home equity loans allow you to tap into your home’s equity. Their terms are usually 10-20 years.
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HELOCs – Home equity lines of credit have draw periods up to 10 years, followed by repayment periods around 20 years.
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Cash-out refinancing – When refinancing your mortgage and taking cash out, repayment terms match typical mortgage terms of 15 or 30 years.
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Contractor financing – Offered by some pool companies, these plans can extend as long as 30 years.
While shorter terms mean higher payments, longer terms reduce the monthly burden but increase overall interest costs. Finding the right balance depends on your budget and financial goals.
Key Factors That Impact Pool Loan Lengths
Several key factors determine how long you can finance a pool loan:
Loan Type
As mentioned above, repayment terms vary significantly by loan type. Home equity loans offer the longest terms of up to 30 years.
Loan Amount
The loan amount also plays a role. For very high balance loans above $100,000, longer terms help keep payments affordable.
Credit Score and History
Your creditworthiness often determines the loan term offered. Borrowers with higher credit scores and solid payment histories qualify for longer, better terms.
Interest Rates
The higher the interest rate, the shorter the offered term will likely be to limit interest costs. Improving your credit can help qualify for lower rates and longer terms.
Income and Debt Levels
Lenders look at your income, existing debts, and debt-to-income ratio when determining terms. The better your financial health, the longer the term you may be approved for.
Weighing the Pros and Cons of Different Pool Loan Terms
When deciding what repayment term works best, consider the key trade-offs:
Pros of Shorter Terms (2-7 Years)
- Forces you to pay off the loan faster
- Less interest paid over loan lifetime
- Faster equity accumulation if home equity financing
Cons of Shorter Terms
- Higher monthly payments
- Little flexibility if financial situation changes
- Risk of underwater home equity loan/HELOC
Pros of Longer Terms (Up to 30 Years)
- Lower monthly payments
- Flexibility as income/expenses evolve
- Allows financing larger pool projects
Cons of Longer Terms
- More interest paid over full loan term
- Slower equity accumulation with home equity financing
- Risk of still owing after pool needs renovating
Tips for Choosing the Right Pool Loan Term
Picking the repayment term for your pool loan requires balancing short-term affordability with your long-term financial goals. Here are some tips:
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Get quotes with different terms and compare monthly payments and total interest costs.
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Avoid terms under 5 years if possible – the payments may get too high.
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For home equity loans, don’t exceed a 15-year term to build equity.
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Match the term to how long you plan to stay in the home. Don’t still owe after moving.
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If using contractor financing, get terms in writing first. Don’t let repayments outlive the pool.
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Be conservative with repayment term if you anticipate lower or unstable income ahead.
Explore All Your Financing Options
While this article focuses on loan terms, also research your range of financing options thoroughly before applying. Shop interest rates and fees. Compare home equity loans/lines, cash-out refinancing, personal loans, and contractor financing. Pull your credit reports and scores from all three bureaus before applying. This helps set accurate expectations on what terms you may qualify for.
With the right pool loan term and financing selected for your personal financial situation, you can make your backyard oasis dream a reality. Enjoy for many years to come!
Estimate your monthly payment for a swimming pool loan
Financing is one way to fund a new swimming pool. When investing in an outdoor addition like a pool, hundreds of thousands of homeowners have successfully used lenders to pay for their project.
The key reason for the popularity of borrowing funds: While a beautiful backyard resort will enhance a home and provide years of healthy family fun and entertainment, it does indeed require a sizeable investment of thousands of dollars.
To evaluate various budget scenarios for financing your new pool, use this free pool loan calculator.*
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*This pool loan calculator is a free estimating tool only; it does not pre-qualify you for any loan programs nor does it guarantee that you will qualify for any pool financing programs or credit terms. This pool calculator performs simple computation, but it does not provide investment, legal, tax, or accounting advice.
How a pool loan calculator helps evaluate budget and financing options
While financing a pool is common across America, the process and various programs may be new for many individuals shopping for a pool. From credit cards to home-equity loans, there are several forms of credit to understand and evaluate as possible choices for buying a pool.
In fact, Consumer Reports suggests that understanding your financing options for a project is a key part of the decision-making process—just like making selections for materials and design elements.
Much like a house or car payment—one way to determine how much to put toward a swimming pool is to consider the monthly payment. In other words, evaluate how much of your household budget you can reasonably afford each month.
With the basic financial information you enter, this handy loan calculator makes it easy to run the numbers— projecting how much a monthly pool loan payment will be.
Begin with a general idea of what an inground, concrete (gunite/shotcrete) pool costs in your local area, and enter the amount you are considering for the project.
Then, try out different loan scenarios. You can change the pool price/loan amount, the number of payments, the interest rate, or a combination of all three. For example, start with a loan amount of $59,749 for a 15-year loan (240 months) at an interest rate of 5.99%, and your monthly payment would be $427.72
Understanding various pool loans and securing the best one for you—based on your credit history and other variables—can require some research and effort.
You can tackle this on your own. Various possible sources for a pool loan are available to seek. Another route is to get help. It’s simple enough by contacting swimming pool builders in your area. Call and ask if they offer financing-related services and support in securing a pool loan (oac).
Depending on the state where you live, the national Blue Haven financing specialist can help locate a lender and facilitate the loan-approval process with the financial institution. You can contact your local Blue Haven team, or, get started by applying online here for a free credit review.
Pool Financing: Can You Finance A Pool?
FAQ
What is the average term for a pool loan?
Is it difficult to get a pool loan?
What credit score do you need for pool financing?
What is the interest rate on pool loans?
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Credit Rating
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Average APR
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Average Amount
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Excellent (720+)
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20.70%
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$18,384
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Good (660-719)
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25.42%
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$14,462
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Fair (620-659)
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30.72%
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$8,355
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Poor (<620)
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31.12%
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$9,611
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What is the cost of a pool loan?
The cost of a pool loan varies depending on the type and size of the pool. For an above-ground pool, the average cost is around $8,,300. For an in-ground pool, the baseline cost is roughly $31,,000. The annual cost of owning a pool can range from $3,,000 to $6,,000.
How long does a pool loan usually last?
The length of a pool loan, when integrated into a mortgage, is typically longer than 15 to 20 years. While a home improvement loan for a pool may last 15 to 20 years, a mortgage term is usually 30 years. Therefore, the costs of a pool are spread over three decades in this scenario.
How much does it cost to finance a swimming pool?
If financing the cost of a swimming pool is necessary, a swimming pool loan allows you to pay off the pool build over time. The average cost for an above-ground pool is around $8,300, while the baseline for an in-ground pool is roughly $31,000.
Do you need a loan to build a pool?
If you’re considering adding an above-ground or in-ground pool, the cost can be substantial. One option for financing the project is a pool loan. This type of loan doesn’t require home equity and can have low interest rates for qualified borrowers. Consider comparing unsecured personal loans to finance your new pool.