Energy efficient home improvements can be more valuable in the long run than mere cosmetic changes. Better yet, your wallet will like them too!
If you're planning to refinance your mortgage, consider borrowing more than the amount needed to pay off your existing mortgage, and use the extra cash to make energy-efficiency home improvements. Here's why.
You'll gain two benefits:
• Interest paid on your home mortgage is usually tax deductible as is interest on home equity loans.
• Energy-efficient home improvements will immediately lower your monthly energy bills.
Energy Efficient Mortgages
Just like the real costs of owning a car includes operating expenses, the same is true for a home. Rising utility costs must be factored into the costs of owning home.
When you are buying, selling, refinancing, or remodeling your home, you can increase your comfort and save money by using the Energy Efficient Mortgage (EEM). It can be applied to most home mortgages. EEMs provide the borrower with special benefits when purchasing a home that is energy efficient, or can be made efficient through the installation of energy-saving improvements.
Home owners with lower utility bills have more money in their pocket each month. They can afford to allocate a larger portion of their income to housing expenses. There are two options with the Energy Efficient Mortgage.
Financing energy improvements through an EEM provides the following benefits:
• Cost-effective energy-saving measures may be financed as part of the mortgage.
• Make an older, less efficient home more comfortable and affordable. Increase your buying power.
• Stretch debt-to-income qualifying ratios on loans for energy-efficient homes.
• Qualify for a larger loan amount. Buy a better, more energy efficient home.
Other Financing Possibilities
Check with utilities or energy-related businesses in your area to see if they offer loans or incentives for installing energy-efficient heating and air conditioning systems, windows, insulation, or other energy efficiency improvements.
Many utilities in the United States offer a range of improvements in the energy efficiency of their customers. The Edison Electric Institute (EEI), offers a list of member company programs that offer efficiency services to homeowners, companies, and industrial plants.
Homeowners will find more energy efficiency services from utilities on the National Energy Affordability and Accessibility Project (NEAPP) website.