Houston residents often research inground pool prices because such elements can add value to their home as well as increase its visual appeal. But, they do call for a substantial investment. Some homeowners may choose to use their savings to pay for the construction. Yet, many others seek financial assistance from a bank or other lending institution. This article explores financing options for the latter.
Types of Financing Options for the Pool of your Dreams
When choosing to take a loan you have the option of opting for a secured loan or an unsecured one. A secured loan is when a bank or financial institution lends you the money that you need against collateral. The collateral is a financial asset that you may own, such as your home. In other words it is a means to making sure that you pay up when the time comes. If you default in any manner, they have the right to claim your house or part of its value to recover their money.
For unsecured loans, the bank or financing authority does not attach any collateral. You do not have to provide equity as surety. Yet, it allows you to borrow money to finance your dream swimming pool project.
Perks of Choosing a Secured Loan
Secured loans typically have lower rates of interest when compared with unsecured loans. They are easily obtained by homeowners against the value of their homes. They are commonly preferred in the swimming pool construction business. Also the time available for repayment can be stretched over a longer period making it easier to repay them. The equity you pledge also acts as an incentive to repay the loan sooner rather than later.
The Subtle Intricacies of an Unsecured Loan
Owing to the absence of collateral, a financial institution is at a greater risk of not recovering the money form borrowers in this case. This is why unsecured loans tend to attract higher rates of interest. They have more stringent terms of repayment and are not spread over a long period of time. Many if not all lending institutions also have a limit to the sum of money that can be borrowed. When seeking an unsecured loan, borrowers are usually offered money between the range of $30,000 and $40,000.
Ascertain your Eligibility for these Loans
To find out if you are eligible for a secured loan, you must begin by estimating the cost of construction of a swimming pool. Approach an expert pool builder who can simplify the process for you. They will offer you a design you prefer and the estimated construction cost. You must then take stock of your financial position, solvency and credit score. Finally, you must approach a financial institution to discover their conditions for lending. Their rates of interest and terms of repayment shall aid you in making a decision.
Augmenting your Property Value
When considering inground pool prices you must remember that when finished, it will increase your home’s resale value by 7 to 12%. This is why it makes perfect sense to approach lending institutions for financing your pool remodelling project.
Yet, nothing could be more satisfying than the enriching experience the pool will offer you and your family for years to come!