Pool Loan Calculator

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Adding a new pool to your yard is exciting, but how should you finance it? Calculate monthly payments for your pool loan with this guide.

Dreaming of diving into your own pool this summer?

Financing a new pool is not only a great way to cool off. It can also add significant value to your home.

With this calculator you'll know:

  1. How much your monthly loan payment will be
  2. How many months you'll be paying off your loan
  3. How much you'll pay in total, including interest

Stick around for tips on shopping, financing FAQs, and more.

Pool Loan Calculator

How to Calculate Pool Loan Repayment

With our calculator, you'll know exactly how much your pool loan payments will be. Here's how to use it:

  1. Enter the loan amount that you want to borrow.

  2. Enter interest rate that the lender will charge on the loan.

  3. Enter term (years) that you'll be paying back the loan.

Once you hit "Calculate", you'll see your loan repayment mapped out with different graphs. Make sure you can commit to the payments each month. Otherwise, you risk loan default.

The last table uses an amortization schedule to further break down your payments. It shows you how much of your monthly payment is paid on the principal and how much is paid on interest.

With a lower interest rate, you pay less overall. This is because more of your monthly payment goes toward principal instead of interest.

What's the average interest rate on a pool loan?

The average interest rates on a pool loan are 5% - 10%. You might be able to secure rates as low as 3% if you have excellent credit.

However, if your credit is low and your debt-to-income ratio is high (over 40%), you might get loan rates up to 20%.

Is it smart to finance a pool? Financing a pool is a good choice if you can secure financing with rates less than 10%. If you can only secure a higher rate, it may still be worth it if you know the pool would give you a greater ROI for your home value.

How much does it cost to build a pool?

The average cost to build a pool is between $15,000 and $30,000. The exact cost will depend on several factors, including:

  • Pool size: Between 10' and 40'
  • Pool type: Above ground, inground, lap pool, infinity pool, indoor pool, lagoon pool, plunge pool, hot tubs/jacuzzis
  • Materials used: Concrete, gunite, fiberglass, vinyl
  • Type of water: Chlorined water, saltwater
  • Extras/upgrades: Pool deck, lighting, cover, retaining wall, fences

How many years is a typical pool loan?

The number of years on your loan will depend on the financing you choose. For a personal loan and a home equity loan, you can usually choose how long the payback term will be. Terms for these loans are between 2 and 10 years.

For a home equity line of credit (HELOC), you're usually allowed to withdraw funds over 10 years. Once the line of credit enters the repayment period, you'll likely have 20 years to pay back what you borrowed.

Remember: A longer loan term means the monthly payments will be lower, but it also means you'll pay more in interest. If possible, choose the loan term with the highest monthly payments that you're comfortable with.

What DTI do I need for a pool loan?

Most lenders prefer to see a DTI (debt-to-income) ratio of less than 40%, but some will accept a DTI of around 50%.

Debt-to-income ratio measures how much debt you have compared to the income you earn. Many lenders look at DTI to determine if you'd be a reliable borrower.

A good DTI is considered to be 30% or lower.

5 Different Ways to Pay for a Pool

Here are a few of the most common ways that people pay for a new pool.

  1. Personal loans: A personal loan can be used for many things, including putting in a pool. You get a set amount of funds with a specific repayment term and, usually, a fixed interest rate.

    Choose a personal loan if: You don't have a lot of equity in your home, or you have good credit and can secure an interest rate less than 10%.

  2. Home equity loan: This is also called a second mortgage. You borrow a certain amount of money against the value of your home and pay it back monthly with a fixed interest rate.

    Choose a home equity loan if: You need a large amount upfront and prefer fixed monthly payments

  3. Home equity line of credit (HELOC): This is a line of credit that is secured by the value of your home. It works sort of like a credit card: you can spend the funds however you like over a fixed amount of time.

    Choose a home equity line of credit if: You aren't sure how much you need to pay for the pool, or your pool contractor isn't offering an all-inclusive deal

  4. Mortgage refinance: This option gives you funds by adjusting the terms and interest rates of your current mortgage. The equity you have in your home will be decreased, but you may be able to reduce your monthly payments.

    Choose a mortgage refinance if: You're not sure you can get a competitive rate on a loan or you want to adjust your monthly mortgage payments

  5. Financing through the pool contractor: Some pool contractors will allow you to finance the pool through them. It's a convenient option, but it usually comes with higher interest rates.

    Choose financing through the pool contactor if: You can't get a personal loan, HELOC, or home equity loan.

Bottom Line

Whether you're creating your dream backyard or adding value to your home to sell, a pool can be a great addition to your property. Once you have a general plan of what you want to do, be sure to thoroughly research your financing options to determine which makes the most sense for you.

A personal loan or home equity loan can be a good choice for those with excellent credit. If you're unsure of how much you'll need or aren't getting an all-inclusive package from your pool contractor, maybe consider a HELOC.

Holly Zorbas is a assistant editor at CreditDonkey, a credit card comparison and reviews website. Write to Holly Zorbas at holly.zorbas@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

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