that bad 4 letter word

[momz]

DEBT

We are getting an inground pool installed and will be financing it. Haven't had any debt other than the mortgage for a while now. But, don't have the money to pay cash for it. We do however, have a 3 month emergency fund and retirement/college funded.

We refinanced our house last year to a lower rate and shorter term. But other than that, haven't applied for a loan in a long time.

Where do I start? Do I go to our bank, or our mortgage company or elsewhere? Do we get a home equity line, a 2nd mortgate, or some other type of loan?

Can't believe I'm voluntarily going back into debt. But, it's worth it.

 

[srferson]

The company that's putting the pool in won't allow you to pay in installments?

 

[momz]

The company that's putting the pool in won't allow you to pay in installments?

oh, I don't know. We haven't settled on the company yet. It's between 2 local builders. Will be completing the design consultations this week. But we haven't discussed financing.

 

[srferson]

Ah. Well that's something to keep in mind. Some companies will allow large purchases to be made in installments. (Which, frankly, makes a lot of sense to me. If I'm selling something big, I'd rather take payments over time than lose your business.)

Just something to keep an eye out for.

 

[dhardawa]

Check rates, obviously, but you might consider a home equity loan so the interest is tax deductible.

 

[starry_solo]

Don't you put 10% down and pay the rest in installments? You can't expect to pay for the entire pool before it's even been put in.

 

[debster812]

I work for a pool construction company, and we do installments for payment. A certain amount at excavation, a certain amount when the shell is poured, a certain amount when the deck is poured, and the balance upon liner installation, filling the pool & start up of the equipment.

 

[cglaura]

I personally would not use the house as collateral (equity, refinance, 2nd mortage, etc.).

Heaven forbid something happens down the road and you are no longer able to afford that extra payment on the house...wouldn't want to risk losing the roof over my head for a pool. Even though in the long run will add value to the property.

Maybe through the pool company or personal loan? I have no clue what a pool price runs. If you are able to get a high balance credit card w/ 0% for the first year or 18 months?

 

[disneyfreakk]

I personally would not use the house as collateral (equity, refinance, 2nd mortage, etc.).

Heaven forbid something happens down the road and you are no longer able to afford that extra payment on the house...wouldn't want to risk losing the roof over my head for a pool. Even though in the long run will add value to the property.

Maybe through the pool company or personal loan? I have no clue what a pool price runs. If you are able to get a high balance credit card w/ 0% for the first year or 18 months?

Pools usually don't add alot, if any value to the property.

 

[ruadisneyfan2]

Pools usually don't add alot, if any value to the property.

And sometimes can make a home harder to sell. I know someone going through that now. People love the house til they see the pool.

Not trying to talk you out of it OP. I know others who LOVE their pools and can't imagine life without one.

 

[CAFarmerGirl]

Start with your local credit union; they typically will have the best rates on various loans.