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Can You Finance a Swim Spa?

If you’re considering purchasing a swim spa, you’ve probably noticed that the price tag is slightly (or significantly) higher than a regular spa. It’s an investment. However, swim spas are a lot more affordable than pools. Additional good news is that it is possible to finance swim spas.
 
Not only that, there are multiple options that we will discuss here. Keep in mind, all financing options are subject to credit approval.
 

 

Swim Spa Financing Options

 

Dealership Financing

 
One of the most common options for financing is through the hot tub dealership. It’s convenient and easy, and most hot tub companies offer it. In most cases, in-house financing can be handled fairly quickly and customers will know immediately if they’re approved or not. Sometimes financing requires a down payment, and sometimes not. Interest rates change with the market but usually average between 5-15%.

 

Personal Loan

 
If you’d like an option that offers a slightly lower interest rate, it’s worth checking with your bank, credit union, or other financial institution. Personal loans aren’t super hard to get if your credit is decent, and especially if you’ve had your institution account for a long time and been consistent with keeping money moving through it. In the case of a personal loan, you’d likely have an opportunity for a fixed interest rate and term. Remember, it’s still an unsecured loan, so your credit will directly affect your interest rate for this type of loan.

 

HELOC

 
Home Equity Lines of Credit are another common form of financing for swim spas and other home and yard improvements. The benefit of one of these loans is that you’re able to work with your lending institution in setting payment terms. Because your home is securing the loan, you’re more likely to lock in a lower interest rate. A HELOC is basically a second mortgage that acts like a revolving line of credit. It can be treated very much like a credit card, but with lower rates. The caveat here is that the rate for these loans are variable, which means they can change periodically. Another benefit of this type of loan is that interest on this loan is tax deductible.
 
The downside to this one is that you’re likely to have escrow, title, and document fees tacked onto your loan, so keep that in mind if you intend to pay it off quickly.

 

Home Equity Loan

 
A home equity loan is really similar to the HELOC, except it’s for a fixed amount. Where a HELOC is a revolving line of credit, an equity loan gives you the full loan amount upon funding, and you’ll have set payments due every month. Once you have the money in hand (or account), that’s the amount you get, and you can’t withdraw or change the amount except for paying it off or making the monthly payments.
 
Most homeowners have at least a small amount of equity in their homes which would allow for this type of loan, and it is definitely a beneficial option because the interest rate will be lower, and it’s also tax deductible.

 

Credit Card

 
Okay. Let’s be real for a second. If you have a credit card with a limit that’s high enough to purchase a swim spa, that’s awesome. Most credit cards offer interest rates between 12-25%, which is significantly higher than the other options we’ve discussed. In most cases, it’s painful to see the amount of interest you end up paying on a credit card purchase of this size. BUT if it’s the only option, it’s still an option, and there are people who prefer to do things this way. Or, you could always make the initial purchase with a credit card and then pay it off once your personal or home loan has processed. If you’re a miles collector, this might be your option of choice. Who doesn’t want free stuff or cash back on your biggest purchases?
 
All that said, financially speaking, credit cards are really only good for short-term financing.

 

Monthly Payment Examples

 
While financing terms and offers will vary from one loan to the next, it’s useful to have a general idea of what your spa finance payments may look like. Let’s take a look at a few scenarios with different amounts borrowed, different interest rates, and different terms. If your financial institution offers a loan financing calculator, even better. Most of them do, so it might help you to check out how much your swim spa would cost monthly if you obtained a loan that way.

 

Amount financed: 10,000

 
At 0% APR for 36 months, your monthly payment would be $277.78.

At 5% APR for 36 months, your monthly payment would be $299.71.

At 10% APR for 36 months, your monthly payment would be $322.67.

At 15% APR for 36 months, your monthly payment would be $346.65.

 

Amount financed 15,000

 
At 0% APR for 36 months, your monthly payment would be $416.67.

At 5% APR for 36 months, your monthly payment would be $449.56.

At 10% APR for 36 months, your monthly payment would be $484.01.

At 15% APR for 36 months, your monthly payment would be $519.98.

 

Amount financed: 20,000

 
At 0% APR for 36 months, your monthly payment would be $555.56.

At 5% APR for 36 months, your monthly payment would be $599.42.

At 10% APR for 36 months, your monthly payment would be $645.34.

At 15% APR for 36 months, your monthly payment would be $693.31.

 

Amount financed 25,000

 
At 0% APR for 36 months, your monthly payment would be $694.44.

At 5% APR for 36 months, your monthly payment would be $729.47.

At 10% APR for 36 months, your monthly payment would be $806.68.

At 15% APR for 36 months, your monthly payment would be $866.63.

 

Swim Spa Pricing Overview

 
Swim spas are generally priced from $15,000 to $40,000 or more depending on quality, with an average swim spa costing around $25,000-30,000. They can be a cost-effective option when compared to purchasing a traditional swimming pool, which typically costs between $40,000-70,000+.
 
A swim spa comes as a unit that is fully functioning and only requires some electrical wiring and a level, even spa pad, which means installation can be completed in a day or two. Conversely, installing a traditional swimming pool involves an entire construction project which can take weeks or months to complete, and often has a handful of unexpected costs.

 

Design Your Own Swim Spa

 
Purchasing a swim spa isn’t just an investment; it’s a lifestyle change that will benefit your entire family. Only you can decide if a swim spa is a good investment for you. Use our online Design Studio tool to select your model, JetPaks, and accessories. Once you’re done, you’ll receive an instant price quote.