How did you pay for your pool?

tampatommy

Well-known member
May 2, 2017
258
Tampa, FL
As the title says, what type of financing did you use (if you were not lucky enough to have a fat bank account)? We are putting a new OB pool in early next year and were looking into a home equity line of credit so i could write a check to each contractor and trade, rather than get a lump sum up front. Our only requirement is finding a HELOC that has fixed rate financing and I refuse to add it to our actual mortgage, since i want it paid off in a few years, not the remaining 26 on the mortgage.

Thanks in advance for your input!
 

tampatommy

Well-known member
May 2, 2017
258
Tampa, FL
Which institution did you use? What percentage are you at? I’d have to check my notes but Bank of America offers this at I think around 6% and no closing costs.
 

elwood58

LifeTime Supporter
We were fortunate enough to pay cash this time, and did not want to finance due to impending retirement. Otherwise I would have gone the HELOC route.

Depending on your tax situation, the HELOC interest should result in additional deductions.
 

Bigpsu04

Member
May 5, 2018
6
Central Florida
Three suggestions for you

1- get a HELOC and make sure the lender offers a fixed rate option. This lets you draw for the payment then you lock the rate in fixed and have fixed payments for that portion

2 - have the HELOC setup before the construction starts. Some states (FL) builders file a notice of commencement which causss issues with a HELOC or HELOAN

3 - rates will go up in 6 weeks (very likely) so if you know your total project cost, get a HE LOAN put the proceeds into a separate savings or checking account, and use that lump sum for the draws out of a savings account.
 

propjetprop

Gold Supporter
Jan 5, 2018
103
Douglasville Georgia
Great question!

We started this project completly debt free including having our house paid off, so we took out a 30 year mortgage for 75k at 4.9%, and pay 3.5 x the minimum payment to have it paid off in 5 years (rocket mortgage). That was our budget for the Pool and landscape project......

BUT WAIT THERE'S MORE....

Then we started discussing the whole plan and quickly realized that we wanted to do it all at once instead of phases and needed more money, so I took out a 50K loan from my 401k. Because I am 40 and still have 25 years of employment left the 5 year payoff time line is not going to effect my long term financial goals... plus we get an insane pool!

BUT WAIT THERE'S MORE....

After spending 120K in borrowed money in 6 months, I need an additional 10k for some design ideas that popped up, more sod, mulch and pine straw... So I used some cash savings for the last 10k.

The whole thing should be paid off in 2022 (5 years) and I plan on being back to completely debt free with this insane back yard! That's the plan at least :rolleyes:
 

mappo

Active member
May 27, 2017
35
Frederick County MD
I can second Lightstream. Online application with same-day approval, money in your account the next day, loans are unsecured (meaning no collateral required), no prepayment penalty, no fees whatsoever, and very competitive fixed rates. I've used them for car purchases, HVAC replacement, and my current pool renovation.
 

GregInClaremont

Silver Supporter
Jun 25, 2017
143
Claremont, CA
100k HELOC through my credit union. Introductory rate of 2.5% for 6 months then resets to prime rate. We have cash to pay it off but may continue financing it and pay 1k a month to maintain some liquidity. (pool pun!).
 

BMK

Bronze Supporter
Mar 29, 2016
436
SW PA
I had a rental property on the market prior to starting the build. We decided to use some of the proceeds from the sale for the pool, so I took out a personal line of credit until the property sold. The property sold a few weeks ago so we paid off what we used of the LOC, and paying the scheduled balance of pool build in cash.
 

JoyfulNoise

TFP Expert
Platinum Supporter
May 23, 2015
17,067
Tucson, AZ
HELOC through our existing bank at a low but variable interest rate (about 4.5% the entire time) but we paid it off very fast, less than 4 years. The extra interest deduction on our taxes was nice but nothing spectacular (always check with your accountant about interest deductions) and the closing costs were low (nothing more than small fee and the bank paid for everything else). Shopping around with lenders helps a lot and, if you can get their rate sheets and terms ahead of time, you can definitely use that to bargain with other lenders.

I think there are lots of options out there for pool financing all with pro's & con's. The best piece of advice is to make sure that, no matter the financing source, you have a solid plan for paying it off and any monthly payments you incur can easily fit into your family's budget. The thing you build in your backyard is there for your enjoyment - if it becomes a source of anxiety or disappointment because of the financial side of it, then it's not worth building it in the first place.
 

ctrav

Gold Supporter
TFP Guide
Apr 23, 2017
2,400
Northlake TX
We did well when we sold our old home to purchase current home. Ended up with a very nice pool and enhancements to the acre property. In the end we paid cash and saved $15-20K easily....
 

jimim

Bronze Supporter
Jun 20, 2016
2,875
NE/Pa
We have been saving and did the pool cash. Along with everything else getting done now with cash. That’s why it’s taking us so long. Lol. But we would rather just run it across multiple years and know it’s done and paid for.

Just us.
 

SBall

Well-known member
Jun 27, 2017
251
Nashville, TN
We are in the cash boat. My wife and I have spent the last 8-10 years with one goal...have enough money in our savings account to pay off the mortgage. We met that goal, and now we can go "play" with any excess funds. Hello, pool :)
 

wilkj1

Gold Supporter
Bronze Supporter
Nov 27, 2017
167
okc/okla
wife used two credit cards 1 cash back 2 % one miles she loves first class btw lol but i called in lots of favors from being in construction here in okc for 40 plus years this includes a deal i got on rebar basicly a big building they double ordered a whole load so they told me if i hauled it all off i could have it i got the concrete thru dolese i have had a account there since 1984 pump was free too i poured all the concrete around pool did all the rough pluming and elect all said and done 42k and we get first class tix for our next trip to mex she allready has one card paid w/ a 10k bonus she gets every christmas