Can You Roll A Pool Into Your Mortgage? A Guide to Pool Financing


Are you considering adding a pool to your home but wondering how to finance it? One option to consider is rolling the cost of your pool into your mortgage. But is it possible? And if so, how does it work? 

Let’s explore the ins and outs of this financing option, so you can create your backyard oasis without draining your savings. Get ready to dive in!

Can You Put a Pool into Your Mortgage?

Yes, you can roll a pool into your mortgage. Rolling a pool into your mortgage means that you can include the cost of installing a pool in your home loan. This allows you to spread the pool’s cost over your mortgage’s life, making it more affordable and manageable.

However, it’s important to note that not all mortgage lenders will offer this option. You must shop around and find a lender willing to include a pool’s cost in your mortgage. You must first meet several prerequisites to be qualified for this type of financing, in addition.

What Are the Eligibility Requirements for Rolling a Pool into Your Mortgage?

Not all homeowners will be eligible to roll the cost of a pool into their mortgage. Here are some of the eligibility requirements you’ll need to meet:

Sufficient Equity

To roll the cost of a pool into your mortgage, you’ll need to have enough equity in your home. Lenders typically require homeowners to have at least 20% equity before considering a cash-out refinance.

Credit Score

Your credit score is critical in determining whether you can roll a pool into your mortgage. A loan that covers the cost of the pool can be available to you if you have acceptable credit. Financing your pool will be challenging if your credit score is low since you might have problems getting approved for a loan.

How to Roll Your Pool into Your Mortgage?

The process is relatively straightforward if you meet the eligibility requirements for rolling a pool into your mortgage. Here are the steps you’ll need to follow.

Determine the Cost of the Pool

You’ll need to know how much it will cost before rolling the cost of the pool into your mortgage. Get quotes from pool contractors and factor in additional costs such as permits, landscaping, and fencing.

Shop Around for Lenders

Each lender has distinct rules regarding what can be included in a mortgage, including whether or not a pool can be rolled into a mortgage. You might be able to include the cost of a pool in your mortgage with some lenders but not with others. Researching your lender’s policies before adding a pool to your home is essential.

Apply for Cash-Out Refinance

You must apply for a cash-out refinance once you’ve found a lender. This entails filling out an application and supplying supporting materials, including tax records, pay stubs, and bank statements.

Get Your Home Appraised

Your home’s appraised value is another crucial factor when financing a pool through your mortgage. You may be able to finance the cost of the pool without exceeding your home’s appraised value if it is already worth a significant amount. However, if your home’s value is lower, you may have trouble securing financing for a pool.

Close the Loan

If approved for the cash-out refinance, you must sign and close the loan documents. Your current mortgage will be settled with the loan proceeds, and the pool’s expenses will also be covered.

What Are the Benefits of Financing a Pool Through Your Mortgage?

Rolling a pool into your mortgage can be an attractive financing option for homeowners who want to enjoy the benefits of having a backyard oasis without paying for it all at once. Here are some of the critical benefits of financing a pool through your mortgage:

Lower Interest Rates

Unlike personal loans or home equity lines of credit, mortgage interest rates are often cheaper. Throughout your loan, this can result in financial savings.

Fixed Payments

Your payments are fixed for the life of the loan when you finance a pool through your mortgage. This can make setting a budget and making long-term plans easier without being concerned about unforeseen monthly payment hikes.

Increased Home Value

Adding a pool to your home can increase its overall value. The National Association of Realtors estimates that a pool typically increases a home’s value by 7.7%. This means financing a pool through your mortgage can be a wise investment in your home’s future.

More Manageable Payments

You can make the payments more manageable by spreading the pool’s cost over your mortgage’s life. This can free up cash flow for other expenses, such as home improvements or college tuition.

To illustrate the potential savings of financing a pool through your mortgage, consider the following example:

The monthly payment would be $191 if the pool cost was assumed to be $40,000 and the loan term was 30 years with a 4% interest rate. Throughout the loan, $27,470 in interest would be paid. In contrast, a personal loan with a 10-year term and a 7% interest rate would require $464 monthly payments and $11,654 overall interest. The homeowner would save $15,816 in interest payments throughout the loan if the pool were financed through the mortgage.

Financing a pool through your mortgage can offer several benefits. However, it’s essential to carefully consider your financial situation and priorities before deciding. Ask your mortgage lender and financial counselor if this is good for you.

What Are the Drawbacks of Financing a Pool Through Your Mortgage?

There are also some drawbacks to consider while financing a pool through your mortgage can offer several benefits. 

Increased Cost Over Time

Although financing a pool through your mortgage can make the payments more manageable, it can also increase the total cost of the pool over time. This is because the interest accrued on the pool throughout the loan term might add up to a substantial sum.

Longer Repayment Period

You will be extending the repayment period of your mortgage by rolling a pool into it. This means paying off your home and building equity will take longer. The pool cost could also be rolled into the remaining mortgage balance if you sell the house before it is paid off.

Qualification Criteria

Not all mortgage lenders offer the option to finance a pool through your mortgage. Even if they do, there may be requirements like a high enough credit score or a certain amount of home equity to make you eligible.

Risk of Foreclosure

You are adding a financial burden to your home by financing a pool through your mortgage. You could risk foreclosure, losing your home, and backyard oasis if you fall behind on your mortgage payments.

Please include attribution to https://sarasotapoolleakdetection.com with this graphic.

A Guide to Pool Financing

Final Thoughts

Financing a pool through your mortgage can be a smart way to fund your backyard oasis and add value to your home. However, it’s crucial to weigh the benefits and drawbacks carefully and consider your financial situation before deciding.

Working with a trusted and experienced pool renovation company is essential if you already have a pool and need repairs or renovations. At Nelson Pool Company, we can connect you with your area’s best pool renovation companies. We can assist you with a minor fix or a complete renovation.

Call us now at (561) 570-1269. We will schedule a time convenient for you to stop by and give you a bid on the repairs. Don’t wait. Take the first step towards enjoying your dream backyard today.

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