The cost of a swimming pool averages around $35,000, or around $50 to $125 per square foot, according to HomeGuide. The actual cost of a pool depends on the size, if it’s above-ground or inground, and the material.
For an inground pool size of 14′ x 28′, here’s an estimated cost based on material:
Vinyl: $36,000
Fiberglass: $46,000
Concrete: $51,000
If you want to get fancy with it, installing extras like waterfalls, decking or a hot tub can add another few thousand dollars.
Personal loan interest rates typically vary from 6% to 15%, depending on your loan amount, term and credit score. Here’s how much your pool might set you back each month and cost overall, based on different rates, terms and loan amounts.
Loan amount
APR
Term
Monthly payment
Total interest
$36,000
15% APR
2-year term
$1,745.52
$5,892.46
$46,000
12% APR
3-year term
$1,527.86
$9,002.90
$51,000
9% APR
5-year term
$1,058.68
$12,520.57
4 ways to finance a pool
Cash is king, but if you don’t have thousands of dollars at the ready, there are some financing options to consider.
Personal loan
An unsecured personal loan is arguably one of the simplest and fastest ways to finance a pool.
These loans can be used for nearly anything, often require good credit and lenders typically cap borrowing amounts up to $50,000 — though some lenders offer up to $100,000. Terms typically range two to five years.
The average interest rate for a personal loan is 11.23%, according to the Federal Reserve.
Home equity loan
A home equity loan involves using your home as collateral on a loan, and you’re borrowing against the equity in your home. You can usually borrow up to 80% of your home’s equity. While rates for home equity loans tend to be lower than personal loans, home equity loans can take weeks to finish due to the extra paperwork, and there are closing costs to consider.
As of March 2023, the average home equity loan interest rate is 7.83%, as reported by Bankrate.
Home cash-out refinance
A home cash-out refi is when you get a new, larger loan to pay off your existing mortgage and get the difference between your old and new mortgage. You’re essentially cashing out a portion of your home’s equity, usually up to 80%.
Current mortgage and refinancing rates are around 6%, and the Prime Rate is 7.75% as of March 2023.
Home equity line of credit
Or HELOC, it’s a line of credit against the equity in your home. You borrow as needed, with most HELOCs having a draw period of 10 years and a repayment period of 20 years.
HELOCs almost always have variable rates, based on the Prime Rate. Borrowers saw an average rate of 15.8% from 2021 to 2022, according to CoreLogic Homeowner Equity Insights.
What is the best way to finance a pool?
The best way to finance a pool depends on your financial situation. If you don’t mind putting up your home as collateral, you may want to consider taking out a home equity loan — these typically come with lower interest rates and your interest may be tax deductible. However, you put your home at risk of foreclosure if you can’t keep up with repayments.
If you’d rather not risk your home, then an unsecured personal loan might be better for you. You can likely qualify for a competitive APR if your credit score is in the good-to-excellent range — over 670. Plus, you have the benefit of a fixed payment schedule, so you’ll know exactly when your pool will be paid off.
What credit score do I need to finance a pool?
It depends on how much you need to borrow. The higher the loan amount, the higher your credit score needs to be.
For example, if you’re financing a pool north of $50,000, you’ll likely need a credit score of at least 670 to qualify. For the best rates, your credit score should be over 740.
Unsecured personal loans may require a credit score of at least 620, and home equity borrowing methods typically require a credit score above 670. That said, there are poor credit personal loan options, but you’ll likely have to plan for high rates and extra fees.
Bottom line
When choosing a loan to finance your new pool, knowing how much you’ll pay in the short and long run is crucial to figuring out the best deal.
An unsecured personal loan may be the easiest way to finance a pool — especially compared to a home equity method. For more personal loan options, read our best personal loans guide.
Bethany Hickey is a personal finance writer at Finder, specializing in banking, lending, insurance, and crypto.
Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt.
Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others.
Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine.
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