We have all spent a lot more time at home in the past few years. Our homes are increasingly becoming a focal point in our lives, in time, money, and entertainment, and Utah home prices reflect their importance. As the global pandemic continues and luxury vacations are postponed or pared down, purchasing and installing a luxury pool in your home may be the most feasible and rewarding option available.

According to some experts, a custom pool in Utah can add value to your property, anywhere from 5 to 8 percent. But aside from resale value, it also adds tremendous value to your lifestyle and turns your home into the luxury vacation you dream of visiting. 

Stevenson Brothers are the leading pool builders in Utah and Utah’s custom pool builders. Here, we explore five ways to make your dream of a custom pool financially feasible and what to be aware of as you consider swimming pool financing.

Tip #1: Can I Finance My Swimming Pool?

The first question you need to ask when considering whether or not to install a new pool or upgrade your existing pool area is, can I finance my swimming pool? In other words, do you have the means, either through loans, cash, or a combination of both, to pay for this project? There are many options available for pool financing, as we’ll explore below. Swimming pools can be a sizable investment, and understanding the upfront costs and how you plan to pay for them is an essential first step. 

The average cost of building a custom swimming pool in Utah ranges between $50,000 to over $1 million. Unlike prefabricated swimming pools, custom pool designs have several variables that modify the price, including superior:

  • Design
  • Size
  • Materials
  • Equipment
  • Features
  • Landscaping

Average costs of upgrading an existing pool can be lower, and there is a range of prices based on the size and scope of your project.

Tip #2: Consider Your Finance Options

There are multiple options to consider when looking at swimming pool financing. It is important to be aware of each option so you can choose the best option for you.

Unsecured Personal Loans

Unsecured personal loans are offered through financial institutions like banks and credit unions, online lenders, or peer-to-peer lenders. These types of loans do not require collateral upfront, but they tend to have higher interest rates than secured loans. They also tend to have shorter repayment terms of around 12 to 84 months, which means you have a shorter deadline and know precisely when you will pay off your pool. 

Home Equity Loans

A home equity loan is essentially taking out a second mortgage and using your home as collateral. You get a fixed rate, usually much lower than unsecured personal loans. Because you use your home as collateral to secure the loan, your home is at risk of foreclosure if you don’t repay the loan as promised. You also need a certain amount of equity in your home to qualify. This type of loan can give you a few benefits as a homeowner, including:

  • Lower interest rates: because your home is used as collateral, interest payments can be lower than unsecured financing
  • Tax deductions: when you use home equity loan funds to pay for improvements to the home that secures the loan, you can deduct interest on your taxes if you itemize your deductions.
  • Extended repayment options: you generally have a longer term to pay off home equity loans compared to other personal loans. The time period is usually 10 to 15 years.

Home Equity Lines of Credit (HELOCs)

A home equity line of credit, or HELOC, is an adjustable-rate line of credit secured by the equity you have in your home. You can draw from it when needed up to a preapproved limit. HELOCs have many of the same risks and benefits as home equity loans.

Credit Card(s)

A credit card may be a viable alternative if you cannot qualify for other types of loans and if you are approved for a zero-rate or a low-rate card that you can pay off before higher rates kick in.

Cash

If you have savings accruing, perhaps because you haven’t taken a vacation in a while or have funds built up, consider using cash to pay for your pool. If you are not able to pay cash for the project in its entirety, you can still make a sizeable down payment that will reduce your loan amount and eliminate or significantly decrease the amount of interest you would need to pay.

Tip #3: Know How to Get a Pool Loan

Now that you know all of the different options available to you, as well as the pros and cons, the next step is to secure the loan. In order to do so, you will need to qualify for the loan. Lenders consider different factors when deciding whether or not you are eligible for a loan, but the most significant factor is your credit history and financial situation.

You may be able to secure a loan with fair or even bad credit, but these loans will come with much higher interest rates. Ensuring you are in good financial standing and have a high credit score will ensure you have a better chance of securing a low-interest loan.

Shop around and get prequalified by multiple lenders and financial institutions to determine which option gives you the best possible outcome. You will need your credit score, personal identification, and proof of homeownership if you decide to pursue a home equity loan or HELOC. Do not sign any loan paperwork until you know:

  • The total interest cost over the life of the loan
  • How much you will pay in monthly loan costs
  • All of the details of the loan term

Tip #4: Prepare Financially for Annual Maintenance Costs

Your costs do not end with the completion of your dream pool. Always factor ongoing pool maintenance into your budget; prepare for the yearly maintenance costs in addition to the upfront price tag. These costs may include:

  • Electricity
  • Lighting
  • Pool-cleaning equipment or services
  • Energy and heating
  • Water
  • Chemicals and treatments
  • Pool cover and fencing

Home Advisor estimates that basic annual pool upkeep ranges from $1,200 to $1,800 or more.

Tip #5: Invest in a Quality Utah Custom Pool with Stevenson Brothers

Financing and installing a pool is a significant investment. This decision is one that you want to do right the first time. Stevenson Brothers is a Utah pool company committed from the start to listening to your project wants and needs and delivering your dream pool on time and on budget. 

As Utah pool builders, we have been creating unique, resort-style pools for over 30 years. Our landscape contractors offer a variety of packages with the latest technology leading the way. Our landscape designs, swimming pools, and waterfalls are truly one-of-a-kind. Custom pools can cost more money upfront, but you are guaranteed a higher quality pool that will last and hold its value and fun for years to come.

Contact us today with questions or to request a quote to fulfill your backyard dreams.