Pool Financing

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Wingnut330

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Mar 30, 2013
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Hello all,

I'm not sure if this is the right section to ask this question, but who have you folks used for pool financing? What types of rates / term did you get? I'm in the Central Ohio area and would like to get started.

Thanks in advance!
 
The rates last year for a pool loan were about 8%. You should just refinance your home if you have the equity and get a much lower rate. Current rates are under 4%. If you do a pool loan you will most likely have to put up your home equity as collateral anyway. Get the money the cheapest way possible. We refinanced at 3.75 which was waaaaay cheaper than a finance company.
 
Not sure if you have BBVA Compass but in Texas they offer a construction loan for home improvements with very flexible terms and low rates. The value of your home is also raised by a certain pct of the pool build to help increase your home equity. But I do realize certain states have different home loan rules.

Also get with with your pool builders. They most times have the best knowledge for your area and some might get better rates if they are a preferred builder by a certain bank.
 
You could also take loan from your 401k if it's set up to allow this. I have no interest and the loan only cost $50.00! 5 year payback term, so I still contribute at a lower rate while paying myself back. No early pay off penalty and had the money in less than a week.
 
I went to a smaller bank here and did an unsecured 3yr loan for our pool. The payment is higher than a refinance or HELOC but we have it completely paid for in 3 years or less and the total interest paid for the loan is $2,000 or less.
 
Good ideas. I think the small local bank might be a good option for us. We built our house a couple of years ago and there's like not much equity just yet, so home equity loan isn't an option. 401K loan is a good consideration also, but I'd like a longer term.
 
4knights said:
You could also take loan from your 401k if it's set up to allow this. I have no interest and the loan only cost $50.00! 5 year payback term, so I still contribute at a lower rate while paying myself back. No early pay off penalty and had the money in less than a week.
Click to expand...
Don't forget the opportunity costs of being out of the market.

I'm sure it all depends on your bank and the terms, but, do they simply give you a check for the excess borrowed above your home's cost..? I've never borrowed any extra, we also refinanced not too long ago. It sure would be nice to take out extra for some improvements though!
 

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Speedo said:
4knights said:
You could also take loan from your 401k if it's set up to allow this. I have no interest and the loan only cost $50.00! 5 year payback term, so I still contribute at a lower rate while paying myself back. No early pay off penalty and had the money in less than a week.
Click to expand...
Don't forget the opportunity costs of being out of the market.

I'm sure it all depends on your bank and the terms, but, do they simply give you a check for the excess borrowed above your home's cost..? I've never borrowed any extra, we also refinanced not too long ago. It sure would be nice to take out extra for some improvements though!
Click to expand...

I agree with No Fear about home equity line, didn't want to pay the loan fee or the interest plus you may end up being below the 20% mark and end up paying private mortgage insurance to boot.
My 401k loan was a friends idea as he takes loans from his all the time. (not pool size though) my terms allow me to take one loan at a time for a max amount then pay back in no more than 5 years or as soon as I want- no penalty, no interest and the only cost was the $50.00 for them to transfer the funds. (only possible down sides are if you lose income and can't make payment then it all becomes taxable and the loan payments are on top of normal contributions unless you decrease that amount for the loan period.)
It was a win-win for me, no interest at all! No need for another appraisal (so the housing tax assessors don't know to jack your rates right away.)
 
I was looking just as you are. Lyon Financial does pool loans and has pretty good terms.
I got pre-approval first am currently working with them to close my loan.
So far they seem to know what they are doing.

I will reserve my opinion till the construction ends and they have made all payments etc. to the builder - but so far its been a fairly good experience dealing with them. So check them out if you are still looking for options.
 
The loan I am getting is available to Texas residents only. You can check what they offer to AZ residents.
I like that they offer 15 and 20 year terms and also allow 100% add on of the cost of the pool before they determine LTV.
Their rates are similar to what others offer for HELOCs, but its the LTV calculation method, LTV allowance (upto 95%) and the loan period that I find quite favorable - considering HELOC interest is (usually) tax deductable.
 
We did an unsecured loan through SunTrust Bank. Our terms were $50,000 for 7 years at 6.24%. It went very smoothly and everything was done in a matter of days. They asked what day I wanted the money and what day I wanted my payments to start. Of course, rates and terms depend on your credit score.

Here is the link: www.lightstream.com
 
4knights said:
Speedo said:
4knights said:
You could also take loan from your 401k if it's set up to allow this. I have no interest and the loan only cost $50.00! 5 year payback term, so I still contribute at a lower rate while paying myself back. No early pay off penalty and had the money in less than a week.
Click to expand...
Don't forget the opportunity costs of being out of the market.

I'm sure it all depends on your bank and the terms, but, do they simply give you a check for the excess borrowed above your home's cost..? I've never borrowed any extra, we also refinanced not too long ago. It sure would be nice to take out extra for some improvements though!
Click to expand...

I agree with No Fear about home equity line, didn't want to pay the loan fee or the interest plus you may end up being below the 20% mark and end up paying private mortgage insurance to boot.
My 401k loan was a friends idea as he takes loans from his all the time. (not pool size though) my terms allow me to take one loan at a time for a max amount then pay back in no more than 5 years or as soon as I want- no penalty, no interest and the only cost was the $50.00 for them to transfer the funds. (only possible down sides are if you lose income and can't make payment then it all becomes taxable and the loan payments are on top of normal contributions unless you decrease that amount for the loan period.)
It was a win-win for me, no interest at all! No need for another appraisal (so the housing tax assessors don't know to jack your rates right away.)
Click to expand...
Question- if borrowing from your 401k does the repayment come out of your pay pretax ? like going into your 401k...
 
Question- if borrowing from your 401k does the repayment come out of your pay pretax ? like going into your 401k...[/quote]

No, you pay it with after tax dollars and because they do not send you a 1099 for it ( unless you default ) then it goes back in and you pay taxes on it when you take it out in retirement.
 

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