Have you heard of a “green mortgage” before? Well, if you have not, now you have! It is considered to be an energy efficient mortgage. It is a home loan for an environmentally-friendly home…that is, a home that meets energy-efficiency standards. You can even qualify for this type of mortgage if you are improving a home you currently own.
There are many reasons you may want to make these types of improvements in your home. One of the biggest reasons is that you will save money on energy costs. Okay, another reason is that you will be reducing adding pollution into the world. It has also been found that these types of homes are typically rated better – which means if you were to sell it in the future, you are adding value into your home.
Some of the newer homes that are available are already compliant according to Energy Star. Energy Star is a program that is sponsored by the government. You may have seen their logo on lightbulbs.
All of the major home loan agencies offer an energy efficient mortgage program. Depending on the program, depends on the rules and guidelines for each. For the most part, the process is relatively similar.
As mentioned earlier, you can save money with these energy efficient upgrades. It will depend on where you live and how much energy is there. In some reasons, the monthly savings may not be grand but when you add it up throughout the year, it may be a few hundred dollars! When making the decision, make sure you factor in the long-term savings.
Also, stay firm in not paying a higher mortgage rate just because you are purchasing an energy efficient home. That should not play a factor at all. As always, be sure you weigh both pros and cons into your final decision.