A relaxing time beside a swimming pool is a perfect way to spend the summer weekends. Whenever most people think of something like that, they mostly think of luxurious hotels and resorts. But what if you have your own pool on your own property?

Yes! Now you can get financing loans for making your own swimming pool on your property with very little expense. You are only a few steps away from building your dream home with a swimming pool. The options of your steps are-

Home Equity Line of Credit (HELOC)

HELOC or Home Equity Line of Credit Means a gyrating credit line, which is secured by your home’s equity or by law. This type of loan works like credit cards. This means, when you avail this loan, you can get enough credit to get financing to make a pool in your property. All you have to be careful is about paying back the loan on time.

Advantages of HELOC

  • You can pay the loan monthly, and you only have to pay interest on the amount you have borrowed.
  • The draw period can be up to 10 years, which means you can have access to it even after finishing building your pool.
  • Low-interest rates than credit cards or personal loans.
  • Can be tax-deductible from the interest using “buy, build, or substantially improve your home” according to the Internal Revenue Service.
  • You can get HELOC within a week with very little or no documentation.
  • Reviewing can be excused sometimes.
  • Considerably Low Closing costs

Disadvantages of HELOC

  • The monthly payments aren’t fixed due to variable interest rates
  • A second mortgage is created
  • Overall mortgage balance increases
  • upsurges your ‘risk’ as a borrower
  • Troubles to refinance your house
  • You might lose your house if you do not pay the monthly payments

Cash-out Refinance

One of the disadvantages of HELOC is that you might have trouble refinancing your house or mortgage again. Cash-out refinance solves the problem as this is the procedure of replacing your current mortgage with a new one. This will reduce your interest rate as well as a monthly payment.

Advantages of Cash-out Refinance

  • The cash can be used for any purpose and also building a swimming pool
  • You can borrow up to 80% of your home’s equity.
  • Mortgage term can be increased or decreased
  • Switching from variable-rate mortgage to static-rate mortgage
  • Removing mortgage insurance
  • Removing co-borrower from the mortgage loan

Disadvantages of Cash-out Refinance

  • Refinancing for a new mortgage requires re-qualifying for the loan
  • Acclaim must be enough to be eligible for the required mortgage loan
  • The amount of the monthly payment might increase
  • Will involve closing costs about 2% to 5% of the total loan

Home Equity Loan

A home equity loan is a lot like keeping a second mortgage. With this loan, you can take out loans for various purposes, including building a swimming pool of your own. But you will not have a regular loan on a needed basis. Instead, you will be given one-time cash in a huge amount. You can easily build your dream swimming pool with the loan.

Advantages of Home Equity Loan

  • Has a fixed interest rate and payment
  • The monthly payment is predictable
  • Usually has a lower rate of credit than a personal loan
  • the interest of this loan can be tax-deductible
  • faster and cheaper than full cash-out refinance

Disadvantages of Home Equity Loan

  • Has closing costs
  • If you can not pay back the loan, you will lose your house

Personal Loans

In most of the stated loans above, your house works as a mortgage, and for any unavoidable situation, you might end up losing your house. If you want to avoid risking your house, you should go for personal loans. This can also be a pool loan taken as personal loans.

Once you’re approved, you’ll receive a lump sum to pay for your swimming pool.

Advantages of Personal Loans

  • The application process is faster than other loans
  • You wouldn’t have to lose your house
  • You get done with the approvement process within a few weeks

Disadvantages of Personal Loan

  • The loan rate is high, so is the interest
  • Have to pay more interest over the life of the loan throughout the life

Thus, you can easily build a Permanent pool inside your property with these loans. All you have to do is to check how much you can afford. If you work according to that, you will not lose anything.