Friday, July 10, 2009

Energy Efficient Mortgage

By now, most people building a new home know enough about green building to know they want their home to be energy efficient for several reasons. Energy efficient homes are better for the ecosystem, eliminate toxins and allergens creating a healthy environment for your family, and reduce costs (energy costs, health care expenses, maintenance and repairs).

High performance insulation such as SIP panels, better windows, and energy efficient appliances and equipment costs can be higher in an energy efficient home, as many of the systems and materials carry a higher price tag than their non-green counterparts. Unlike standard non-green items, though, the energy efficient choice gives you a return on your investment by paying for itself over time. With an Energy Efficient Mortgage (EEM), your investment pays off right away.

If you are planning to build a new home and think you can’t afford to add energy efficient products and features because they cost too much, as your local banker about an Energy Efficient Mortgage.

Here are the facts about Energy Efficient Mortgages:

Regular home mortgages do not take energy costs into account, even though energy is a major household expense. In a typical home, energy consumes about 10% of the household budget. Energy Efficient Mortgages recognize energy costs along with recurring payments, such as principal, interest, taxes, and insurance. By investing in energy saving features, homeowners will save money every month. By financing the cost of the energy efficient building materials, the monthly savings is greater than the additional monthly payment, and in most cases, the homeowners enjoy positive cash flow in the first month!

The Energy Efficient Mortgage rewards homeowners with up to a 5% instant equity credit. That means if you are building an energy efficient home and it originally appraises at $300,000, it would be immediately worth $315,000.

The New Construction Energy Efficient Mortgage can be combined with both fixed-rate and adjustable-rate mortgages. We can also to construction to permanent financing (or single-close mortgages) so that you don't need to pay two sets of closing costs. A positive aspect of energy efficient homes (other than lower utility bills) is that they have a good impact on the environment. The average home that goes through an Energy Efficient Mortgage will reduce greenhouse gas emissions by 2-4 TONS per year.

Talk to your local banker today about an Energy Efficient Mortgage to finance your new energy efficient home!