How to Finance a Swimming Pool

First Republic Bank
December 11, 2020

With a solid financial footing in place, spending some additional money to upgrade certain aspects of your life — like your home — can make good fiscal sense. If you’ve been seriously considering making some changes to your home recently, you aren’t alone — home improvement has been on the rise in 2020, with project leads for home professionals in June seeing a 58% increase from the year before.

When it comes to home updates, many families may look to add a pool to their backyard as a way to increase the value of their home, to provide entertainment, or both. Installing a swimming pool at your home may seem expensive, but it doesn’t have to be cost-prohibitive. There are many ways to finance a swimming pool, including a personal line of credit, home equity loans (HEL), home equity lines of credit (HELOC), cash-out refinances, personal or “pool” loans and in-house refinancing offered by a pool company.

First Republic’s Personal Line of Credit1 – access funds with fixed rates from 3.95% APR (with discounts)2.

As a homeowner, you should carefully consider which option is best for you based on your unique financial needs. There is a wide financial range of what you can spend when adding a pool to your house. Factors like the type of pool, overall size and materials used all help determine what the overall price could be.

Average cost: $51,418

What to consider: Inground pools are often considered more luxurious than above-ground options, and they are certainly more permanent. A pre-made option will likely cost less than a custom-made one, which can include features like waterfalls and other water designs that might drive up the price. Keep in mind that the cost to install the pool is just the beginning — with any pool option, there will be maintenance and upkeep fees to consider, as well.

Above Ground Pools

Average cost: $2,569

What to consider: The price of an above ground pool makes it more appealing to some than inground options. They tend to be quicker to install, and they are much easier to remove if, in the end, you decide you actually don’t want a pool after all. They come in multiple sizes, depths and materials, and are often round, rectangular or oval in design.


Average pricing: Pool pricing can vary widely depending on the specific size, shape and features of the pool. Some average pricing options for different inground and above-ground options are:




10' x 20'


15' x 30'


20' x 40'



Above ground:



12’ round


24’ x 12’ oval


12’ x 24’ rectangle



What to consider: The larger the pool, the more money you’ll pay, which will be important to think about when it comes to weighing financing with practicality.

For example, while a smaller pool might be more economical, if your entire family can’t fit comfortably in the pool to relax, you might need to consider a larger size to justify the cost.

Average pricing: Like with size, the type of material you want for your pool will factor into the overall price you’ll likely pay. For example:

Inground pools:


Average Cost








Above ground pools:


Cost Range








What to consider: When it comes to material, you often get what you pay for. For example, although steel is usually the cheapest option, it can oxidize or corrode over time, while aluminum — the more expensive choice — is rust-resistant. Be sure to discuss with your contractor or pool supply store ahead of time what material is best for your particular area, weather and overall needs.

Is Financing a Pool a Good Idea?

If you’ve decided that adding a pool to your home will either increase the value of your home, provide priceless fun and entertainment, or both, then financing a pool can be a solid option.

Before doing so, be sure to take into account the additional costs associated with owning a pool, as well, such as:

  • Ongoing pool maintenance and increased utilities: Pool owners can expect to spend anywhere from $1,200 to $1,800 annually on the basic upkeep of a pool. Combined with any necessary repairs and/or additional utilities, that price creeps up to $3,000 to $5,000 per year.
  • New fencing: A new pool fence — which is important for safety – might cost between $1,500 and $10,000 to purchase and install.
  • Homeowner’s Association fees and additional permits: Check with your contractor about any necessary permits required to put in a pool — as well as how much they might cost. If you are part of a Homeowner’s Association, you’ll definitely want to check in with them first to find out if a pool is allowed, and if so, whether you’ll need to purchase any additional permits before starting the work.
  • Increase in home insurance: Adding a pool may be considered a liability by your homeowner’s insurance, so check in with your policyholder to find out how much — if any — your monthly premiums will go up if you do decide to get one.

Financing Options

Adding a pool might be a large expense, depending on the different options you decide to go with, but luckily, there are a number of financing options available. Be sure to research the specifics of each before moving forward with installing a swimming pool.

Home Equity Loans

A home equity loan is a closed-end credit option that requires borrowers to use the equity in their home to secure the loan. How much you can borrow will be determined by how much value you currently own in your home — as opposed to its overall value — and the amount that’s available will be offered in a lump sum, with payback terms set over a specific period of time. Loans that require collateral to secure the funds — like a home equity loan — often offer lower interest rates than products that are collateral-free, but not always.

Home Equity Loans (HEL) and Home Equity Lines of Credit (HELOC)

Similar to a home equity loan, a home equity line of credit is a loan that uses the borrower’s equity in their home to determine the amount they can borrow. Unlike the home equity loan, a home equity line of credit is an open line of credit from which the borrower can continue to draw throughout a specific timeframe, known as their draw period, over a number of years. Because HELOCs are secured, with the equity in your home as collateral, they may come with lower interest rates — although they tend to be variable — than other financial products, depending on the lender.

Cash-out Refinancing

A cash-out refinancing also involves using your home as collateral, but in this instance, the refinance would replace the mortgage you currently hold with a new loan for an amount that's higher than what you actually owe on the house. The difference between what you owe and the new loan amount is then available to the borrower in cash.

A cash-out refinancing may come with lower interest rates than other mortgage-specific loans and depending on the interest rate of your original mortgage, you may be able to score a lower overall interest rate on your mortgage, as well.

This type of financing option does usually come with additional closing costs, though, and if you aren’t able to put down 20% on the value of your home (like when you originally signed up for a mortgage), you’ll still owe private mortgage insurance on your new loan.

Personal Loans, or “Pool Loans”

If you’d prefer a loan that doesn’t require collateral — and is therefore considered unsecured — a personal loan to cover the costs of your pool and installation is another option. For many lenders, an unsecured personal loan is considered higher risk, so terms like the borrowing amount and interest rate could be dependent on individual factors, like credit history. In general, the interest rates for a personal loan do tend to be fixed. although this will vary with each lender. Be sure to check for details.

In-House Financing With a Pool Company

Some pool companies offer their own financing terms, which may be worth looking into. Keep in mind that pool companies aren’t banks, so this wouldn’t truly be considered “in-house financing,” and they are often able to come up with their own set of variables — like interest rates and additional fees. If you do want to look into this option, be sure to check in with financing options from other banks to see how they compare.

A Personal Line of Credit

A personal line of credit is a flexible way to get access to cash for a wide array of personal or household needs, usually over a certain number of years. Borrowers are given a set amount of money from which they can borrow up to the limit over the course of their draw period. Since the money can be used for a wide array of personal or household needs, it’s an easy way to borrow money for purchases with ongoing timelines (like a pool, for instance, with the ability to make upgrades or additional purchases as needed).

With a personal line of credit, you only borrow what you actually need from the full available balance, and you only pay interest on the borrowed amount, rather on than the full available loan amount. Then, if you stick to the terms of your loan agreement, once the original amount that you’ve drawn is paid back, that amount is available to the borrower again, during the draw period.

Personal lines of credit may be secured or unsecured, with interest rates that are variable or fixed, depending on the lender, and there may be additional fees to consider. At First Republic Bank, however, borrowers have access to competitive low, fixed rates with no loan origination, maintenance or prepayment fees—as well as tailored service from a dedicated banker who will stay with you over the life of the loan and beyond.

What is the Best Way to Pay for a Swimming Pool?

A swimming pool can provide years of fun and entertainment for your money, but even if you’re financially strong, it’s important to take the additional costs into consideration. Luckily, there are a number of options for financing a pool, with a personal line of credit being one of the most flexible ones.

When you’re ready to start researching pool finance options, be sure to speak with a banker at First Republic about the different financing options available, or check out your rate through our personal line of credit calculator.

First Republic’s Personal Line of Credit1 – access funds with fixed rates from 3.95% APR (with discounts)2.

The strategies mentioned in this article may have tax and legal consequences; therefore, you should consult your own attorneys and/or tax advisors to understand the tax and legal consequences of any strategies mentioned in this document. This information is governed by our Terms and Conditions of use.

Contact your legal, tax and financial advisors for advice on deciding whether this is the right product for you. Terms and conditions apply.

Product is not available in all markets. For a complete list of locations, visit Applicants must meet a First Republic banker to open account. This is not a commitment to lend. Loan approval is subject to a completed application with associated documentation and confirmation that income, liquidity, credit history and other application information meet the minimum requirements for this product. Applicants should discuss line of credit terms, conditions and account details with their banker.

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