Hot Tub Loan | Important Information on How it Works

– Hot Tub –

Hot Tub Loan: Having your Hot Tub can be a dream come true. Whether it is to soothe aching muscles, you can have it all right. It is important you know that it does not come cheap.

Home Advisor estimates you could spend anywhere for your hot tub installation. This can be between $3,000 and $20,000. However, this depends on the type and quality.

Hot Tub Loan – Important Information on how it Works

The different types of hot tubs fit a range of spaces. It also fits a different range of lifestyles and budget. However, there are small tubs that fit only two to three people. Also, there are the large eight-person tubs with all the bells and whistles.

LightStream – A Key Financer of Hot Tub loan

There are very few lenders who specialize in hot tub loan financing. LightStream is one of them. LightStream understands it a little better than general lenders. As such, they can give you some tips as you search for the right one.

Also, LightStream offers lower interest rates on its loan. This is lower than a traditional personal loan. Also, you will get a discount on your rate if you set up autopay through your checking account.

This is what happens when you get approved for a LightStream hot tub loan. You can have the loan funds in your bank account even on the same day.

How to Finance a Hot Tub Loan

The following are some other ways to finance a hot tub loan;

  • Dealer Financing

Many dealers offer qualified customers financing packages. This allows them to fund the purchase of the hot tub. Aside from offering an easy and convenient way to finance your hot tub, please note.

Special financing offers for prime borrowers may make dealer financing more affordable. This is so when compared to other financing options. However, this is not always.

You may be stuck with higher rates if your credit is bad. This can happen whether you use dealer financing or not. Also, financing through the dealer typically does not cover additional costs. These costs are those you may incur while preparing your home for hot tub installation.

  • Leveraging Home Equity

If you are purchasing a hot tub, you likely own your home. Also, if you have equity in your home up to 15% to 20%, please note. You may be able to leverage it by taking out a home equity loan.  Also, you can take home equity line of credit (HELOC).

Both financing options are secured by your home. Also, they usually carry low interest rates. This is the same even for borrowers with average credit.

Both home equity loans and HELOCs require you to use your home as collateral. Thus, only use these options if you can manage your monthly payments.

  • Home Equity Loans

Home equity loans are traditional loans that are secured by your home. As such, they often have lower rates than unsecured loans.

Also, they are accessible to borrowers with fair or poor credit. These loans typically have fixed rates and require monthly payments.

  • HELOCs

When financing, this gives you access to an approved pool of funds. This is for a specific period, e.g., 5-10 years. You can draw on the funds as needed. Also, you will only need to make payments. Furthermore, plus interest, on the amount you borrow, similar to a credit card.

A HELOC may be a good option if your hot tub installation will take place over a few months. Also, it is an option if you are worried about additional preparation or installation costs.

  • Personal Loans

Personal loans are another financing option. Typically unsecured, borrowers can use them for a broad range of purposes. These purposes include a home improvement loan.

A personal loan can also give you the freedom to make any additional purchases. Also, it covers costs associated with your hot tub.

It is important you know that its rates may be higher than for home equity loans. However, your home will not be at risk if you cannot pay back your loan.

  • Credit card

You could potentially finance all or a portion of your hot tub loan with your credit card. Also, note that a balance of more than 30% of your credit limit can hurt your credit score.

And credit cards tend to come with higher interest rates than personal loans. However; unless you are able to take advantage of a card with a 0% introductory rate.

How Much does it Cost?

The cost of a hot tub depends on the quality of the model you choose. Below are some of the models and their cost;

  • Low-end Hot Tubs: This costs $3,000 to $5,000.
  • Mid-range Hot Tubs: Also this model costs$6,000 to $9,000.
  • Luxury Hot Tubs: The cost of this is $10,000.

How much does it cost to install it?

How much does it cost to Install it?

Hot tub installation will run you anywhere from $300 to $20,000. However, prices vary depending on what you want. The variation goes thus;

  • Above-ground Hot Tubs

The total price depends on the tub you choose. Inflatable ones can be delivered and installed for less than $500.

Wooden and acrylic ones are more costly. It ranges from $4,000 to $16,000.

  • Built-in Hot Tubs

The cost of a built-in is typically between $15,000 and $20,000. Also, since installation requires more work, you should note.

You will want to ensure you find a good contractor with a team. They must have experience with the excavation and installation process.

Some Factors that Affect the Price of Hot Tub

It is important you know that the price you pay depends on several factors. Below are some of the factors;

  • Size and Seating

The amount of water your hot tub can hold influences the price you pay. Also, the number of people it can fit will influence the price you pay. Thus, the bigger the tub, the higher the cost.

  • Included Features

Some features, like massage jets or touch-screen controls, may also affect the price. Luxury and convenience will make a hot tub more expensive.

  • Quality

The quality of materials plays a role as well. An inflatable hot tub will cost far less to buy and install.

  • Manufacturer

Like most luxury items, the brand and model you choose could influence the price. Be sure to compare similar hot tub manufacturers before making a final decision.

  • Delivery Costs

The type of tub you buy and where you live will impact how much it costs to get delivered.

In general, the heavier the tub or the more remote your home is, the more the price.

  • Optional Accessories

Hot tub covers drink holders and lighting will all add to your costs. The more bare-bones your hot tub, the less you will have to pay.


With so many varieties of hot tubs to choose from, shopping around will be easy, Also, comparing features helps you find the one that fits your lifestyle and budget.

Though many dealers offer to finance, please note this. You may get a better deal by comparing your personal loan options yourself.

A hot tub can be a welcome addition to your home life. However, it can also be a fairly large expense. As such, if you do not have enough cash to finance your purchase, hot tub financing can help. However, each option comes with a unique set of pros and cons.

We hope this article has been helpful to you. Please share it with anyone you think will appreciate the information and kindly drop your comment below.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *