How do you pay for your pool install?

[sarahgelatinano]

Thanks to everyone on here for all their insight and stories. I have been lurking, reading, learning. We are maybe 2-3 years out from a build.

Just wondering how most people pay for their pool installation? I suppose much of it has to do with the builder, I've seen some advertise that they accept financing type pool loans.

I got 3 quotes this summer, nothing set in stone or itemized list but general ballpark (all required a non refundable design fee of either $1000 to 5% of the pool cost to get specifics, which I was not ready to fork out) ranged for FG pool 80g to gunite at 90-120. This is for "standard" pools as the builders said.

But just wondering what is common/what others do. Home equity line of credit? Save cash the good old fashioned way? Regular personal bank loan? Pool loan? A little of each?

 

[Newdude]

Hey Sarah !! We took an unsecured loan from a company called lightstream. The PB recommended them and when we shopped around they had a great rate at the time. We liked that it was independent of the mortgage like a car loan.

 

[Turbo1Ton]

We did the same as Newdude, just a different company. Lyon Financial is who our PB worked with. Rates were not awful, especially considering it is an unsecured loan. I suppose they could send goons to tear it up, but there isn't much that they could repossess and sell to recoup some of their investment.

I think you hit on all the options. If a personal loan gave you as good or better of a rate as a pool loan, then go for that. If you can get enough out of a HELOC, then that could be the way to go since I believe most of the time you can deduct the interest on a HELOC.

Lots of factors go into that decision such as how long you want to be paying for it, how much income you have each month to put towards the pool loan, etc.

--Jeff

 

[poolnoobgrandma]

I've never heard of charging for a detailed quote. We had 3 detailed quotes with drawings, then negotiated chose the company that had a great reputation and a bit of price flexibility. That was in late 2018, so maybe things have changed.

 

[jark87]

I've never heard of charging for a detailed quote. We had 3 detailed quotes with drawings, then negotiated chose the company that had a great reputation and a bit of price flexibility. That was in late 2018, so maybe things have changed.

Same here. Given the increase in demand, I can see how builders may have moved to a model that requires a level of commitment up front. As a consumer, I'd hate it. As far as payment goes, we followed the Randy Moss philosophy: straight cash, homey! That was back in '07, though. With rates where they are now, we might have made a different decision.

 

[JoyfulNoise]

Since you have a long time frame, start saving up for it. Credit is one way to get there but it leaves you with a big bill to pay that sticks around long after the pool is built and has to be paid off no matter what changes happen in your life. You won’t be able to lock in any rates now so start investigating loans & terms to see what you’re getting yourself into. A HELOC is a good way to tie the pool to your home and, in many cases, the interest on the loan is deductible. HELOC rates tend to be variable though so your payments can go up with time. Construction loans or pool loans can be fixed rate but usually with a shorter repayment schedule and well above the prime rate.

The more you can save up now, especially in an interest-bearing account, the less you have to borrow and pay for going forward. Believe me, the pool is nice to have the first couple of years but after a while the excitement of it wears off and it just becomes another part of your home you have to “take care of.” Long after the excitement wanes, you’ll be stuck paying off a loan for it and you won’t like it. Unlike an old car you can get rid of and upgrade, a pool is forever.

 

[Newdude]

Long after the excitement wanes, you’ll be stuck paying off a loan for it and you won’t like it. Unlike an old car you can get rid of and upgrade, a pool is forever.

+1. We went with a 7 year loan and right about the time we were sick of making payments it was done.

 

[jtpipkin]

My school of thought was that we'd never get the money back from building. We sold our house and found one we loved that already had a pool. It can go both ways, selling feature vs. liability... Free pool is the way I looked at it...

 

[Newdude]

There were a lot of 15-20 year options and the monthly payment was better @2/3, but not for 2-3 times the length of the loan. We thought ‘ok we will just pay more each month to equal the 7 year loan’. and that’s great on paper until life happens and the furnace blows up or it’s Christmas time.

 

[gingrbredman]

I do find it interesting that your found PBs can get away with design fees, xx% up front, just to talk about what you are getting in a pool. If this were the case by me, we either wouldn't have a pool, or would have found a PB that didn't ask for that.

Is it a lot of work for a PB to try and sell a pool? Of course it is, but that is a cost they have to get business. Look around the under construction section, you will see tons and tons of people talking with all kinds of pool builders, working on designs, specs, equipment before they find the right builder for them. Yeah, some PBs are going to invest some time and money into customers they don't get, but they are going to get some, and their prices no doubt have those "expenses" built into every quote. Yes, demand is up, but to go to this option of charging for design and consultation is something I wouldn't even entertain unless I was doing a owner build.

From what I have seen, PBs have gotten good at gauging how realistic a customer is in building a pool, and what their budget is. The first contact/meetings will no doubt have questions about timelines, budgets, affordability. If the PB thinks a "potential" customer is just kicking the tires, and not serious about the financial commitment or timeline, they probably wont spend a lot of time and money on design or even further conversations. If I went to a pool builder and tool them I'm probably three years away from building a pool, I would probably get the same reaction from the PBs as you are. "I'll do the work, but three years out? I'm probably gonna have to charge you for that". My guess is, most PBs throughout the country who meet with customers on more current timelines and the financial backing to build a pool, and you will have a lot of them trying to get your business.

As for funding the pool, there have been a lot of good suggestions already. For example, my PB offered 0% financing for one year, from a 3rd party bank. A lot of PBs work with finance companies, the more you can finance through them, the more they can build. I don't have a particular suggestion on that, but as mentioned above, there are a lot of ways to fund the perfect pool for your backyard, you just need to find the perfect builder.

 

[poolnoobgrandma]

My school of thought was that we'd never get the money back from building. We sold our house and found one we loved that already had a pool. It can go both ways, selling feature vs. liability... Free pool is the way I looked at it...

DEFINITELY the cheapest way to get a pool. We've been in our house and neighborhood for 35 years, so it wasn't an option for us, but if you're not stuck in, spend the time before you pull the trigger looking around at existing options.

 

[Nikilyn]

We refinanced our house and pulled the money out and our house payment still went down. Win, win.

 

[mizzourah2006]

We just signed a contract and our build will start in Septemberish of 2021. We are saving now. We will probably be able to pay 75-85% of it in cash and then will take out a margin/cash loan against our brokerage for the remainder. I have a few investments that are under water, so I'm considering selling them and then realizing some cap gains in the same amount as another option as well.

 

[poolnoobgrandma]

We just signed a contract and our build will start in Septemberish of 2021. We are saving now. We will probably be able to pay 75-85% of it in cash and then will take out a margin/cash loan against our brokerage for the remainder. I have a few investments that are under water, so I'm considering selling them and then realizing some cap gains in the same amount as another option as well.

Is the September build your choice or are they that backed up? Just curious.

 

[mizzourah2006]

Is the September build your choice or are they that backed up? Just curious.

They are that backed up. Our builder said that 2019 was the best year the company had had in his 31 years in the business and in 2020 he'd outsold 2019 by June. Unfortunately it also comes with a more expensive build than it appears most here are paying. From what I've seen my build will be about $20k more than most similar pool builds here.

 

[RDFBocephus]

Interesting enough our PB just recently started the process of "screening" over the phone prior to meeting for a pool consultation. Prior to COVID our PB would have had you come into their showroom, and they would then design the pool in person free of charge.

Now with COVID they state that if expectations seem to be in line with moving forward over the phone they will then schedule the consultation, and charge a "conceptual design fee." Which if I were to do this all over again I would have told any PB to pound sand to charge an upfront conceptual design fee even if we moved forward with their quote. So things have definitely changed in the pool business as far as supply and demand goes.

In regards to paying for a pool we took out a HELOC on our home at a lower rate than our current mortgage. We have paid cash thus far though 50% of our build, and will eventually tap into the HELOC to pay for the remainder. After paying the PB any residual amount of available credit will be used to pay off our home loan at a lower interest rate. So in essence we are paying cash, and utilizing a HELOC at a lower interest rate to pay for the pool. Also we are "refinancing" our home loan through the HELOC at a lower rate so it is a win win for us. That being said it is all contingent on your credit score, and whether you have the ability to secure a low rate on a HELOC. Not to mention have the available funds to pay for all the necessary pool furniture you will need once your pool is built.

Another factor to consider is whether or not the neighborhood your home is in will support a pool build. In our prior home the neighborhood had very few pool homes so building a pool in that neighborhood wouldn't really make sense. You would have never recouped any amount of money even remotely close to what it would have cost to build the pool in that neighborhood. In our current residence there is a pool in almost every yard so to build a pool makes sense since you will "almost" recoup the cost of the pool build all while being able to enjoy it while you own the home. That being said I know building a pool is like owning a boat, but with COVID this year and having to keep our kids home from school for three month through FL's hot summer months a pool is a no brainer for us at this point.

 

[cowboycasey]

I am refinancing right now, I will get money out of it on a 15 year loan and my payment will go down.. Crazzy but with 2.5% interest rates its hard to beat and my last loan was a 15 year 3% loan

 

[Newdude]

Now with COVID they state that if expectations seem to be in line with moving forward over the phone they will then schedule the consultation, and charge a "conceptual design fee

I personally blame the homeowners in areas where they charge design fees. Even if the prospective clients are ok with the $80k in theory, they often haven’t done the math until they apply for a loan after they’ve decided to get the pool. When they see the monthly payments, reality sets in and PB loses the client and his time. I can only imagine how many deals don’t work out where they only do gunite pools for $80k-$120k. If some of those deals fall through then the builder just absorbs it as a cost of getting new clients, and that’s fair enough. But if too many people can’t handle their own math beforehand, I can see the need to charge for quotes.

 

[Homebrewale]

I paid cash for my pool.

 

[MiguelACA]

I paid half cash half HELOC