Energy Efficient Mortgages
More Energy Savings means more Buying Power.
Energy is often the greatest cost of operating a home. Reduce your energy costs, and you have more disposable income. Mortgage lenders take energy savings into account in determining how much you can afford to pay each month on a mortgage—and how much you can borrow to buy a new home.
For more information, see this excellent article from Home Energy Magazine.
There are two types of Energy Efficient Mortgages (EEM's). Most lenders will finance both types.
- New Homes. You can purchase or refinance a home that is already energy efficient. With an Energy Efficient Mortgage, you have the option of buying a higher quality home because of the lower monthly energy costs as documented by an energy rating report.
- Existing Homes. You can purchase or refinance an existing home that will become more energy efficient when you add energy saving upgrades. These are sometimes called Energy Improvement Loans. The cost of energy saving improvements, as documented in an energy rating report, is incorporated into the loan.Both types of energy mortgage programs rely upon a home energy rating to calculate the savings generated from energy efficiency features. .
