- Aug 27, 2012
The investment of a new American Fiberglass Pool can be the beginning of a lifetime of family fun, friendly get together, birthday bashes, and BBQ’s! When considering you dream pool, think about your budget and explore the different avenues you can take to finance your pool purchase. Of course you want to get the most bang for the buck and that’s exactly what American Fiberglass Pools and our family of Dealer / Installers intend to provide. Here is a guide to help you understand and obtain the best swimming pool financing. 1.THINK LONG TERM When you purchased your home, you likely financed your purchase with a long term mortgage. Your new American Fiberglass Pool can be financed the same way. Most lenders classify a new pool as a permanent improvement to your property that is very likely to increase the property value. In fact, many lenders will “add back” ½ the cost of your pool project to the appraised value of the home. In most cases, they are willing to finance your pool for up to 15 years. Because you can finance your American Fiberglass Pool over a longer period than a car, your monthly payments are much, much lower. This means you might want to get a bigger pool or add more options. Current rates are averaging around 6%. 2. TAX ADVANTAGES Home improvement loans are secured by your property. In most cases the interest will be tax deductible. Who among us can’t use a few more deductions? It is always best to consult with your accountant or tax advisor if you wish to confirm the deductions. 3. AMERICAN FIBERGLASS POOLS WILL HELP YOU FIND THE RIGHT LENDER a. We have many lending sources. All are very familiar with pools. Each of these lenders work on providing quick approvals and offer programs that work best for most families like yours. b. Most of our lenders do not require appraisals. Most of our lenders will determine your property value by the purchase price or a recent tax assessment. If an appraisal is required, typically the lender will pay for it. c. Home improvement loans typically require you to have 10-20% equity in the property. On occasion a down payment from you will off-set any equity short comings. This type of lending does not require pre-payment penalties. Some lenders will “add back” up to 50% of the cost of the pool to increase your equity. d. Unsecured loans: There are lenders that will provide these types of loans as well. Of course, without the security of your property, the loan is strictly credit driven. You must have very good to excellent credit and expect to pay a little higher interest rate than a secured loan. Our unsecured lenders do not charge a pre-payment penalty. Rates can vary depending on your credit and debt ratio from 4 ½% – 9%. CLOSING While every pool buyer’s situation is unique, every pool installation is also unique. At times some folks want short term loans, some want longer term loans with lower monthly payments. Some pool buyers want to finance only the pool while others want to also include fencing and landscaping. American Fiberglass Pools has lenders that are flexible enough to meet 90% of our clients that apply and have lenders in all 50 states. We are happy to share our various programs with you. Call us at 800-324-7665 or send us a reply us here for additional information.