Easy Hot Tub Financing Options

Are you planning to create a relaxing backyard retreat with a luxurious hot tub? Smart decision. There’s nothing like a long, hot soak to ease away a long day’s stress. Fortunately, a hot tub is well within your reach and budget. You can now afford the best of models with the available hot tub financing options.

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How much does a new hot tub cost?

Average hot tub installation costs approximately $4,000 to $8,500. This includes installation as well as labor costs and the work of an electrician. The cheapest hot tub option is an inflated hot tub for two people at $1,000 and the most expensive hot tub is an acrylic hot tub with a cover lifter for 12 people at $12,000.

The total cost depends on many factors, including the hot tub quality, hot tub design, performance, features, labor costs, and even your location.

Should I finance a hot tub?

Yes. Apart from the fact that a hot tub provides a spa of your own at a very reasonable price, it’s also a significant investment in terms of your health and wellness. Financing a hot tub is a bit different from financing other home improvement projects such as a bathroom renovation or a roof replacement. A hot tub is usually considered a luxury addition instead of a necessity.

However, if you’re planning to sell your home, installing a hot tub would add to its value and make it more attractive to potential buyers. With easy hot tub financing, you can make your home improvements right away at affordable monthly payments that fit within your budget.

Read more: Bathroom remodel & renovation financing options

How much are payments on a hot tub per month?

Your monthly payments depend on the interest rates you have and the loan term. The best-case scenario when you’re able to take advantage of a hot tub zero percent financing promotion. In that case, your monthly payment is just the price of the hot tub divided by the number of months financed. The loan term is typically 36 to 60 months. Such a financial arrangement makes a top-of-the-line hot tub quite affordable.

Be on the lookout for hot tub dealers who offer their customers a zero percent interest rate offer. In such hot tub offers, you’ll only pay the amount you borrow.

Keep in mind that the shorter the repayment term, the more will be your monthly payment; and vice versa. For example, an $8,000 hot tub with an APR of 8% for a loan term of 36 months will cost you $250.69 per month while the same APR for a term of  60 months will cost you $162.21 monthly.

Can you finance a hot tub with no credit check?

Yes. There are some loan options available, including an unsecured personal loan, if you’re not in favor of a credit check or have a tarnished credit score. 

Also, with a no-credit-check loan, your loan qualification/eligibility is in the hands of your loan lender to a large extent.   

Hot tub financing (no credit check) does not require a hard inquiry into your credit report during the loan application process. That means your credit history is not a huge factor in determining loan approval. Your personal information such as employment history as well as the amount of down payment you’re willing to pay the loan lender is important in order to secure such a loan. 

Having said that, it’s best to work towards improving your credit score and get a better hot tub financing deal with a lower interest rate.

Read more: Swimming pool financing & loans

What are the different hot tub financing options?

If you’re ready to install your hot tub without cash on hand, financing your hot tub installation is the best way to go ahead. You do have several financing options available.

Hot tub financing through home equity loans

You can get the required funds for hot tub financing by tapping into your home equity. Just make sure that you make your payments on time as per the loan agreement. Such types of loans may also carry high application costs and a prepayment penalty if you pay off the loan earlier than its term.

Hot tub financing through zero-equity personal loans 

If you lack equity in your house or do not want to use it as collateral, you can opt for a personal home improvement loan. Especially, if you’re looking at one of the more expensive hot tub models.

Keep in mind that unless you have an excellent credit score, the high-interest rates may make your hot tub financing an expensive affair. 

Hot tub financing through a credit card 

If you’re choosing a reasonably priced hot tub, a credit card may be a great option for hot tub financing. Most credit card companies have a loan minimum of at least $2,000, which is a good amount for a new hot tub. That way, credit cards offer good flexibility and convenience.

Pros and cons of hot tub financing

Once you zero in on the best way to finance your new hot tub, it’s easier to stay on schedule and on the budget for the home improvement project. Trust us, your home remodeling will be easier and more manageable. And, you can get a quality hot tub — without putting a big financial strain on your lifestyle. Just make sure to choose the most favorable interest rates and monthly payments. 

Paying back the loan funds when you’re financing a home improvement can be a bit stressful though. Especially if you’re already experiencing cash flow difficulties. 

Always remember that if you default on your payment schedule, it can adversely affect your credit score and credit rating. However, if you plan your hot tub loan smartly and you will be able to manage your finances well! 

Is a hot tub worth the money?

A hot tub is worth the investment if you intend to make use of it regularly, and if you can afford the maintenance costs. Here are some of the advantages of having a hot tub.

1. Hot tubs are great for relaxation. The feeling of being cocooned by warm water while jets of water massage you and relax your muscles is hard to beat.
2. Hot tubs are used for hydrotherapy, to provide relief from pain caused by aching muscles and arthritis, among other things.
3. Soaking in a hot tub increases your metabolism, aiding with weight loss. However, make sure you soak in it before your main meal for the day.
4. Get a hot tub, and before you know it, your friends and family will want to lounge in it every half chance they get, making it the center of social interaction.

Are hot tubs high maintenance?

Maintaining a hot tub is not really a very expensive procedure. However, it does take regular upkeep and an investment of around $20 a month for some chemicals and testing supplies.

There are three things you will need to do regularly to ensure your hot tub stays in great shape,

1. Maintain good water circulation. In most hot tub models, the water circulation cycle is scheduled to automatically run for 15-20 minutes once or twice a day. If your hot tub does not have that automatic setting, manually turn it on for 15-20 minutes twice a day. Remember, the more your filters are run, the cleaner the water will be.
2. Keeping your hot tub clean is important, irrespective of whether it is indoor or outdoor. If it’s outdoor, clear it of all debris, leaves, etc. Make sure your water lines and setas are clear. Clean the jets and shell once a week with some white vinegar and a sponge. Cleaning the outside with a 10% bleach-to-water solution will keep mildew away. Make sure you drain your spa and clean it thoroughly at least once every three or four months.
3. Balance your hot tub water using the following chemicals:

• A ph increaser and ph decreaser to control the water ph levels.
• An alkalinity increase to make sure the ph levels don’t change drastically.
• A sanitizer to kill bacteria and germs.
• A non-chlorine shock to boost the sanitizer.
• Test strips to periodically test the water.
• A defoamer

Does a hot tub increase home’s value?

A portable hot tub will not increase the value of a home. However, a spa built into the ground made of concrete or natural stone will add to the value of the home, even more so if it has attractive landscaping accompanying it. You can expect the value of the home to go up by up to 50% of the value of the hot tub.

Financing a swim spa

Here are the five ideal ways to finance a swim spa.

Home improvement loan

Banks and credit unions give out unsecured home improvement loans at rates lower than credit card interest rates. These are a great option for swim spas, just as long as you know in advance exactly how much you’re going to spend. You can choose between fixed and variable interest rates. 

HELOC or Home equity line of credit

If you’ve been living in your home for a few years and have built up a decent amount of equity in your home, a HELOC is the perfect loan to finance your swimming spa. While these loans will use your home as collateral, the interest rates are much lower than home improvement loans. You also pay interest only on the amount you use, not the amount you’re eligible for.

Read more: How often interest rate change on HELOC

Personal line of credit

A personal line of credit is similar to a tab at your favorite restaurant. You get a pre-approved limit. You can keep drawing from that limit and repaying it. The good thing is that you pay interest only on the amount you’ve used. However, being an unsecured loan, the rate of interest is higher than a secured loan.

Mortgage refinancing

This is when you top your existing home mortgage from the same lender. This probably has the lowest interest rate among all the loan types we’ve discussed, making it an ideal choice to finance your swim spa. However, the approval process is lengthy and you may be expected to pay legal as well as appraisal fees.

Dealer loans

If your pool dealer or installer is offering an unsecured loan, jump at it, especially if your credit rating is less than perfect. Most loans of these types are to be paid back in fixed installments over a fixed period of time, and often have higher interest rates than secured loans.

Financing plug and play hot tubs

Plug and play hot tubs are portable hot tubs that can be plugged into a regular 110-volt electrical outlet and they’re ready to use. They are extremely affordable, easy to install, and require no extra plumbing or electrical work.

Considering you can get plug and play models for as little as $1,000, a credit card or a personal loan would be the ideal way to finance your purchase of one. A lot of dealers and installers offer dealer loans as well.

Portable hot tub financing vs built-in hot tub financing

Portable hot tubs tend to be a lot less expensive than built-in ones. Inflatable hot tubs are available for as little as $400, while more expensive portable spas may cost as much as $2,000. In-ground spas are a lot more expensive, in comparison. A built-in tub made of acrylic could cost anywhere between $5000 and $10,000. Ones made of concrete or natural stone begin from $10,00 onwards to around $16,000.

A lot of dealers offer in-house loans for attractive interest rates, and these are a popular way to finance hot tubs. The repayment term ranges from 30 months to 60  months. The interest rate depends on a variety of factors, including your credit score, the US prime rate, which is the benchmark lenders use to determine the interest rates borrowers should be offered, and the dealer who’s financing the loan. A lot of dealers often offer customers zero-interest loans as well. However, keep in mind that in lieu of interest, some dealers may add a financing fee to cover the costs that their bank charges them for servicing your loan. Often, this amount is as much as the interest payable for the term.

Read more: Deck financing options

Written by Ramona Sinha. December 10, 2020

Ramona is a content writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. An avid traveler, she’s a digital nomad at heart and an animal lover from the depths of her soul.