I’ve wanted a pool forever and considered selling or renting my home to get a home with a pool. I know they can be a pain and expense in terms of upkeep, so please don’t respond telling me what a waste it is. I’ve decided to keep my home and add a pool. Here are my options.

(1) Refinance my current mortgage ($130k) to include the cost of the pool ($30k). The pool would be amortized over 30 yrs…so the jump in payment would only be a couple hunded a month. I’d have to pay fees with the refinance, and my rate would go up about half a point from where it is now.

(2) Do a home equity line of credit for the cost of the pool. I’d only pay interest and a small portion of the balance but would pay off the pool when the house is sold (though there’s no plan to do so for the next 5+ yrs). Interest would be deductible.

(3) Pay for it out of savings and be done with it. This seems cleanest, but there’s no tax deduction and I deplete part of my rainy day fund. Suggestions?
Levendis: As to rates, my current mortgage is at $130k at 5.5 percent. If I refinance I’d be looking at 15 years I might be able to get 6, or slightly higher, 30 years would probably be 6.5. Home’s value is at $260 plus or minus. I recognize I won’t get $30k improvement in equity by adding the pool. The HELOC I have now for $10k is inching up to 9%…however, I’ve received offers of a standard Home Equity Loan for $75k at $6.99 fixed (30 year). As to savings…I have about 90k with about 75 of that in CDs.

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