Green (Energy Efficient) Mortgages
These days, most of us do what we can to help protect the environment, otherwise known as “being green”. You might recycle, conserve water, and use rechargeable batteries and energy efficient light bulbs. However, things like home renovations or utilities upgrades to be more environmentally conscious may seem financially out of reach to the average person. This is where the new “green mortgages” come into play.
Green mortgages, also known as Energy Efficient mortgages (EEMs), are designed to help you pay for renovations to your current home (or a new one) without having to take out a second mortgage. These renovations might include upgrades such as tankless water heaters, double paned windows, new insulation, or modern HVAC systems. The idea behind EEMs is that people who have environmentally efficient homes can afford a larger mortgage because they are spending significantly less on utility costs.
Not having to take out a second mortgage means everything is rolled into your primary mortgage, and you still make just one payment each month.
Getting a “green” mortgage is a great way to save money and change the way you live in terms of the environment. In addition, an energy efficient house is warmer in the winter, cooler in the summer, and has lower monthly and maintenance costs overall. Keep in mind the following facts:
- Between 50 and 70 percent of all the energy used in the average American home is for heating and cooling.
- Old windows account for nearly 25 percent of annual heating and cooling costs due to energy loss.
- Upgrading your insulation may save 20 percent on heating and cooling your home.
- About 20 percent of air in centrally heated and cooled homes is lost due to old or faulty ductwork.
- New energy-efficient dishwashers save up to 1200 gallons of water every year.
All this means you’ll use less energy to keep your house as warm or cool as it needs to be, and you won’t have to worry about whether your friends, family and pets are comfortable in your home.
Energy efficient mortgages allow you to borrow more money to invest in upgrades for a new or older home. They also help you qualify for more money to buy a home that already has “green” upgrades. The best news of all is that there is no need to qualify for an energy efficient mortgage. If you have a primary mortgage, you will already qualify for an EEM. There is no additional down payment needed for an EEM, either. For more information, ask the representatives at the usual places: banks, mortgage companies, and other lending organizations.