Energy Efficient Mortgages
It seems like everywhere we turn we hear about steps we should take to save energy and “go green.” Now our mortgages are no exception.
Whether you feel you would like to do your part to help protect the environment, keep a little extra money in your pocket each month, or would simply like to make your home feel more comfortable, an energy efficient mortgage (EEM) may be right for you!
The EEM loan program helps both current and potential homeowners significantly lower their monthly utility bills, while adding value to their homes as well as making their homes look and feel better.
“How can we do this?” you may ask. Simple. With an EEM, we can incorporate the cost of adding energy efficient improvements into your new home loan. 100% of energy efficient upgrades can be financed with nothing out of pocket.
So what’s the catch? The only catch is that the cost involved in adding the energy efficient features must be less than what your actual savings is. In other words your monthly savings, on your utility bills, must be greater than the amount that is added to your monthly mortgage payment. This is determined by a home energy rating system or a qualified energy consultant who will calculate your total monthly savings.
This program works great for both new construction as well as existing homes. Some of the energy efficient improvements include: adding central a/c and removal of swamp cooler, replacing furnace, installing new vinyl windows, replacing hot water heater, adding set back thermostats, window tinting, upgraded attic insulation.
If you can qualify for an FHA, VA or possibly even conventional mortgage, you can qualify for an Energy Efficient Mortgage as well. There is not any adjustment to the interest rate on your mortgage and just a minimal fee to be paid to the qualified energy consultant, which can be included in your loan. This may be a great way to receive up to $8000 or 5% of the purchase price, (whichever is less) to make your home look and feel its best.
So, if your home could use a little “greening”, and you would like more information on EEMs ,
Give Me A Call At 801-699-6805
Lance Sorenson is Vice President of Mortgage Lending at Guaranteed Rate. He specializes in Energy Efficient Mortgages, FHA and FHA203k rehab loans, Utah Rural Housing and all first time homebuyer loan programs. Visit him online at GuaranteedRate.com or phone him at 801-699-6805