Paying For A Pool: Does Financing or Paying With Cash Save You More Money in 2025?

Let's talk money - because a $45,000 to $65,000+ price tag for an Arizona pool isn't exactly pocket change. Well, you're probably wrestling with a pretty big question: should you finance your pool or pay cash?

Here's the thing - here at Shasta Pools we've helped thousands of homeowners tackle this exact decision for almost 60 years. Some folks love the idea of spreading those payments over time with financing. Others can't stand the thought of paying extra in interest (and we totally get it). Neither mindset is wrong - it really depends on your unique situation. 

You might be looking at a basic $45,000 pool or dreaming of that $100,000 backyard resort. Either way, your payment choice matters more than ever in 2025. 

Those personal loan rates? They're starting at 6% these days. Home equity options? You're looking at 8% or higher. Sure, cash payments dodge those interest bullets - but they'll also take a big bite out of your savings.

But wait - what about your home's value? Here's some good news: a pool typically bumps up your property value by 8%. And that boost? It's the same whether you finance or pay cash.

By now, you’re beginning to see there are a lot of factors to consider. Ready to figure out which option could keep more money in your pocket? Let's break down both choices and help you make the smart call for your wallet.

How Much Does Financing Your Arizona Pool Really Cost?

Those monthly payments are just the tip of the iceberg. We've seen countless Arizona homeowners surprised by the real cost of financing their backyard dreams. Let's pull back the curtain on what you're actually paying for.

What are the current interest rates for pool loans in 2025?

Credit score matters - big time. Here's what we're seeing at Copper State Credit Union for their home equity pool loans:

• 6.25% APR if you're sitting pretty at 760+

• 6.50% APR for the 720-759 crowd

• 6.75% APR when you're in the 680-719 range

• 7.00% APR for scores between 650-679

Think those rates sound good? Well, personal loans start at 6% but can skyrocket to 35.99% depending on your credit score. Home equity options? They're typically friendlier, starting around 8% with terms stretching up to 30 years.

How much would a monthly payment be after financing a pool?

Let's talk about real numbers. Your monthly pool payment could land anywhere between $448 and $1,122. Many folks go with a 15-year second mortgage at 6.99% - though shorter terms mean bigger payments but less interest overall.

Here's a real-world example: financing a $50,000 pool with a 10-year HELOC at 4% puts your monthly payment at about $506. Other expenses you’ll need to budget for include:

• Pool equipment power bill: $30-$150/month

• Water fill from evaporation: $0-$20/month

• Chemical treatments: $25-$80/month

Hidden fees and charges to watch for

Now, here's where things get tricky. Those sneaky extra costs? They can really add up. Some lenders hit you with prepayment penalties if you try to pay off your loan early. Others slap on consulting fees up to 6% of your loan amount.

Don't forget about those construction surprises either - retaining walls, abnormal soil conditions, hauling away dirt, fixing up your landscaping afterward, etc. And watch out for lenders who play the "shot-gunning" game with your credit applications - that can ding your credit score faster than a cannonball splash.

Here's our pro tip: before you sign anything with your lender, get every single fee in writing. We're talking disbursement fees, origination costs, processing charges - the whole nine yards. Trust us.

What’s The Real Cost of Paying for a Pool in Cash?

Want to skip the whole financing dance? Let's talk about cold, hard cash. For a typical Arizona pool running around $65,000, pulling out your checkbook might make you sweat - but there's a method to this madness.

Immediate savings on interest payments

Here's something we love about cash payments - you're done.

No interest charges hanging over your head, no monthly payments haunting your mailbox. You'll own that sparkling pool free and clear from day one. Pretty sweet deal, right?

If someone financed a $65,000 pool using a 15-year second mortgage at 6.99% interest, here’s what they’d be looking at:

• Monthly payment: ~$581.21
• Total paid over 15 years: ~$104,617.80
• Total interest paid: ~$39,618

By paying in cash, you'd avoid an almost $40,000 in interest over the life of the loan. That’s a significant savings—over 60% of the original pool cost in interest alone.

The Hidden Cost of Paying Cash: Lost Liquidity & Investment Growth

But hold on - we've got to keep it real here. Dropping $65,000+ from your savings account? That's enough to make anyone nervous. We've seen plenty of homeowners face this dilemma: sure, you dodge those interest charges, but what happens when your water heater decides to quit the next month?

And let's not forget about those investment returns you might be giving up. If your money's making more than 6% in the market (what you'd typically pay for a pool loan), you might actually come out ahead by keeping your cash invested. Yeah, math can be funny that way.

Cash Discounts: Why Arizona Pool Contractors Love Upfront Payment

Now here's where cash gets interesting - pool contractors love it. Like, really love it. We're talking some discount 10%-15% when a customer is willing to pay cash. That's enough to cover your first few years of maintenance and then some. You're probably asking yourself a really smart question right now...why would a contractor discount 10% just because I am paying cash? Do the materials get cheaper for them? Nope. Does their company insurance rates lower? Nope. 

Here are some reasons as to why a contractor might tempted and anxious to accept cash over any other payment method:

• Skipping the permit process - this can make getting to the construction process faster, which means you're happier, but ultimately a contractor is anxious to start requesting payments from you

• Use of unlicensed labor -  let's be candid, unlicensed labor is cheaper and, most often, the only way to pay them is cash to keep it "off the books"
• Avoiding taxes - this may be the most common and logical reason to incentivize a cash payment from you...we're not saying it's ethical or right but for the contractors that are the most transparent, this is the most commonly stated reason why "cash is king"

If you’re considering a cash discount offered by a pool company, just make sure you understand what’s being traded for those savings — not because we’re your "dad", but because we want you to have all the facts to make the best long-term decision for your home and your peace of mind. If there is little to no financial paper trail for your project, like a dispute during construction or after it's completed, with warranty work, getting support from the ROC can be a real uphill battle.

Long-Term Financial Comparison: Financing vs. Cash

You might want to grab a calculator for this one. We're about to crunch some serious numbers that'll show you exactly where your money goes over time. Spoiler alert: cash buyers usually come out ahead, but there's more to this story than just dollars...

Let’s say you're looking at a $65,000 pool. Whether you finance or pay cash, your actual cost depends on more than just the price tag—it depends on how you plan to pay and what that money could be doing elsewhere.

If You Finance:

With a 15-year second mortgage at 6.99%, your monthly payment would be about $581.

After 5 years, you’ll have spent roughly $34,872 (60 months × $581.21)

After 10 years, that total climbs to $69,744 (120 months × $581.21)

Keep in mind—you’d still have 5 years of payments left after that.

If You Pay Cash:

Paying upfront means you avoid all that interest—but there’s an opportunity cost to consider. If that $65,000 had stayed in a well-performing investment account earning 6% annually (assuming the stock market performs as it has for the last 10 years...which, given the current market conditions, is a big assumption):

You’d miss out on about $21,985 in potential growth over 5 years

And nearly $51,405 over 10 years

That means your true cost of paying cash could look more like:

• $86,985 after 5 years

• $116,405 after 10 years

So Why Do Some Cash Buyers Still Come Out Ahead?

Because cash offers an "all paid for" experience that financing can’t always match:

A handful Arizona "pool contractors", the DIY-ers (not pool builders) could offer cash discounts of 5-7%, which could save you $3,250 –$4,550.

You’ll avoid monthly payments and interest entirely - you own it outright and immediately

You keep full control over your project and timeline with not having to depend on a lender releasing the funds after proof of specific phases being completed

✅ Bottom Line: If you're sitting on enough savings to comfortably pay upfront without draining your emergency fund or sacrificing higher-yield investments, cash can absolutely be the smarter financial move—especially if you negotiate a discount or plan to stay in your home for a long time.

It’s not just about ROI. It’s about flexibility, peace of mind, and making your money work best for you.

Impact on home equity and resale value in Arizona

Here's some good news - your pool typically bumps up your home's value by 5% to 8%. Queen Creek, Scottsdale, or Paradise Valley? You might see even better returns.

Arizona Central Credit Union's are getting pretty generous these days, some offering home equity loans up to 120% of your home's value. But remember - those fancy features and custom designs? They're worth their weight in chlorine when it comes to value (See what we did there? Chlorine is expensive).

Fun fact: pools are like gold in Arizona's real estate market. Homes with pools often sell quicker than their dry counterparts, especially in our sun-soaked cities. Makes sense, right?

Tax Implications and Insurance Considerations

Think of pool ownership like a game of chess - it's not just about the moves you see right now, but planning several steps ahead. 

Tax benefits and insurance requirements? They're like those tricky diagonal moves that could either help or hurt your game.

How pool loans affect your tax deductions in Arizona

Here's something most cash buyers miss out on - those sweet tax perks from home equity loans. The IRS actually lets you deduct interest on home equity loans when they're secured by your property. Pretty nice silver lining to that financing cloud, right?

If you're going the home equity route, keep these points in your back pocket:

• Your loan needs to be secured by your home to get those tax deductions
• Personal loans? Sorry, no tax breaks there

Here's an interesting twist we've seen - pools installed for medical reasons could bump up your tax deductions by about $12,000, potentially saving you $3,000+ depending on your tax bracket. 

But fair warning - claiming pool deductions might catch the IRS's attention, so keep those receipts organized.

Insurance premium increases for financed vs. cash pools

Whether you write a check or finance your pool, your insurance company's going to want to have a word with you. Most providers will nudge you to boost your liability coverage from $100,000 up to $300,000-$500,000. Think of it as your pool's security blanket.

Let's break down what you're looking at:

• Expect your premiums to jump $50-$75 yearly for in-ground pools
• Want to keep those increases down? Safety features are your best friend - fencing, alarms, non-slip decking

And here's something we always tell our clients - consider an umbrella policy. For about $200-$300 yearly, you get $1 million in extra coverage. That's less than a dollar a day for some serious peace of mind.

Oh, and don't forget about property taxes - they might creep up thanks to your pool boosting your home's value but it's usually only a modest increase. But hey, that's the price of enjoying your backyard, right?

Comparison Table: Pool Financing v/s Cash Purchase

Ready for the showdown? We've put together a no-nonsense breakdown of financing vs. cash for your 2025 pool purchase. Sure, that $65,000 average price tag might make your eyes water, but let's see exactly how these options stack up.

Let's cut to the chase - cash is king, or queen, when it comes to saving money on your Arizona pool in 2025. We're talking serious savings here - anywhere from $3,200 to $25,644 in savings when compared to financing. But hey, we get it - not everyone has $65,000+ sitting in their bank account ready to make a splash.

Here's what we've learned after helping countless Arizona homeowners with this decision: cash buyers score some sweet deals. Dodging those 6.25% interest rates (even with stellar credit)? That's like finding money at the bottom of your pool.

Sure, financing looks tempting with those $448 to $1,122 monthly payments. We've seen plenty of folks go this route. But watch out - those "manageable" payments have a way of adding up faster than pool chemicals after a pool party.

Want to know something interesting? Your home value jumps 5-8% either way. Those tax breaks on home equity loans? Nice, but they usually don't make up for all that interest you're paying.

Here's our bottom line: take a good hard look at your finances before diving in. Cash keeps you debt-free but empties your savings pool. Financing keeps your cash float but ties you down with monthly payments. Either way, you're making waves in your financial future - just make sure they're the kind you want to ride.