- February 16, 2023
Save Money and the Planet: An Energy Efficient Mortgage Explained
Energy efficiency is becoming a top priority for homeowners and homebuyers alike, and for good reason. Energy efficiency lowers energy bills and protects the environment. In other words, one way to make your home more energy efficient is through an Energy Efficient Mortgage (EEM). In this article, we will explain what an EEM is and how it can help save money and the planet.
What is an Energy Efficient Mortgage (EEM)?
An EEM is a type of mortgage that takes into account the energy efficiency of a home when determining the loan amount. Therefore, it provides financing for both the purchase of a home and energy efficient upgrades to the home. Hence, this mortgage encourages energy-efficient home improvements that can lower energy bills, especially improve comfort, and improve indoor air quality.
How Does an Energy Efficient Mortgage Work?
In essence, EEMs let homeowners borrow more for their mortgage to pay for energy-efficient upgrades. In addition, the lender calculates the upgrade cost using a home energy rating system and increases the loan amount. Moreover, the homeowner then invests in energy-efficient windows, appliances, and insulation.
Once the upgrades are complete, the lender can conduct a final inspection in order to verify that the work has been done. Furthermore, if the inspection is successful, the homeowner will then have a more energy efficient home. Additionally, the savings on their monthly energy bills can be used to pay off the additional mortgage debt. As a result, this not only saves the homeowner money on energy bills, but it also increases the value of their home.
Why Choose an Energy Efficient Mortgage?
There are many benefits to choosing an EEM, including:
- Lower Energy Bills: Energy efficient upgrades can reduce monthly energy bills, thus helping homeowners save money each month.
- Increased Comfort: Energy efficient upgrades can improve indoor air quality and increase the comfort of a home which makes it a more enjoyable place to live.
- Improved Indoor Air Quality: Energy efficient upgrades, such as air sealing and ventilation systems, can improve indoor air quality by reducing pollutants and allergens in the air.
- Increased Home Value: Energy efficient upgrades can increase the value of a home, thus making it more attractive to potential buyers.
Better for the Environment: Energy efficient upgrades can reduce a home’s carbon footprint, helping to preserve the planet.
Who is Eligible for an Energy Efficient Mortgage?
Homeowners who are eligible for an EEM include those who are:
- Purchasing a new home: An EEM can be used to finance both the purchase of a home and energy efficient upgrades.
- Refinancing a home: Homeowners who are refinancing their existing mortgage can use an EEM to finance energy efficient upgrades.
- Making energy efficient upgrades: Homeowners who already own a home can use an EEM to finance energy efficient upgrades.
How to Get an Energy Efficient Mortgage
In order to get an EEM, buyers must first find a lender who offers this type of mortgage. Many lender in Myrtle Beach offer EEMs. Subsequently, the buyers should inform the lender they found about their energy-saving improvements and their cost. Consequently, the lender will use a home energy rating system to calculate the loan and upgrade costs.
In conclusion, an energy efficient mortgage (EEM) is a great way for homeowners to save money and the planet. Financing energy-efficient upgrades can lower homeowners’ energy bills, improve indoor air quality, increase their home’s value, and reduce their carbon footprint. Most importantly, finding a lender that offers EEMs and providing information about your improvements are the first steps to getting one. Myrtle Beach homebuyers can start energy efficiency with Berkshire Hathaway HomeServices Coastal Real Estate.
If you have a preferred agent to work with, let us know and we will forward your information to them. If not, we will happily introduce you to one of our qualified agents to assist you in the buying or selling process.
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