Energy Efficient Mortgages (EEMs) often increase home affordability while reducing carbon footprints - a win-win for your wallet and the planet.
Energy Efficient Mortgages (EEMs) offer an exciting, often overlooked opportunity for homeowners and buyers alike. These special types of loans empower you to finance cost-effective, energy-saving measures as part of a traditional home loan. Imagine decreasing your utility bills, increasing the value of your property, and making your home more comfortable, all while contributing to environmental sustainability. How is this possible? Lenders recognize that reduced energy costs mean more money available to pay off a mortgage. As a result, they offer more generous lending terms. EEMs are also government-backed, ensuring their availability and affordability. Whether you’re purchasing, refinancing, or renovating, an EEM could be the key to a greener, healthier, more resilient home. Take a step forward for your finances, your well-being, and the planet.
Pros
- Financial Savings: By financing energy-efficient upgrades, EEMs lower utility bills, delivering substantial long-term savings compared to traditional mortgages. The energy savings often offset the slightly higher monthly mortgage payments.
- Enhanced Property Value and Comfort: Energy-efficient homes typically have higher resale values and offer improved comfort, with better temperature regulation and reduced noise.
- Environmental Impact: EEMs incentivize green living, contributing to carbon reduction goals and fostering a sustainable future.
Cons
- Higher Upfront Costs: The cost of energy improvements can result in a higher initial mortgage compared to traditional loans, although this is typically offset by utility savings over time.
- Eligibility and Process: Energy audits are required, which can be time-consuming and costly. Furthermore, not all energy-efficient improvements may qualify.
- Limited Lender Availability: While EEMs are federally recognized, not all lenders offer these loans, potentially restricting options for borrowers.
Hiring Pros
- Use reliable platforms: Start your search with trusted websites such as those found in our resources.
- Check credentials and certifications: Experts should have industry-recognized qualifications, such as Residential Energy Services Network (RESNET) or Building Performance Institute (BPI) certification.
- Read reviews and ask for references: Gauge the expert’s reputation by seeking out reviews and talking to past clients.
- Prioritize experience in your local area: Each region has unique climate considerations that impact the effectiveness of energy-efficient improvements.
- Assess their familiarity with EEMs: Make sure they have a solid understanding of the process, including required energy audits and improvement qualifications, to ensure a smooth process.
Do It Yourself
- Educate Yourself: Start your search with trusted books & websites such as those found in our resources.
- Assess Your Skills: Be realistic about your technical abilities. While some installations, like induction cooktops, may be straightforward, others, like heat pumps, can be complex and may require professional help.
- Prioritize Safety: Always turn off the electricity at the breaker box before working on any electrical appliances. Never take safety for granted.
- Get the Right Tools: Ensure you have the correct tools for the job. Some projects may require specialized tools or equipment.
- Consider Costs: Sometimes, the cost savings of DIY are outweighed by the benefits of professional installation, such as warranties or maintenance services. Always consider the full picture before deciding to DIY.
Resources
Books:
“Consumer Guide to Home Energy Savings” by Jennifer Thorne Amann, Alex Wilson, and Katie Ackerly
“The Homeowner’s Handbook to Energy Efficiency” by John Krigger and Chris Dorsi
Websites:
U.S. Department of Housing and Urban Development (HUD): www.hud.gov/program_offices/housing/sfh/eem/energy-r
U.S. Department of Energy (DOE): www.energy.gov/eere/buildings/home-energy-score
University of Michigan’s Center for Sustainable Systems: css.umich.edu/factsheets/residential-energy-factsheet
Arizona State University’s Global Institute of Sustainability: sustainability.asu.edu/sustainable-homes/energy-efficient-mortgages
Residential Energy Services Network (RESNET): www.resnet.us
Energy Efficient Codes Coalition (EECC): www.energyefficientcodes.org
Energy Star: www.energystar.gov/newhomes/mortgage_lending_programs/energy_efficient_mortgages
The Mortgage Reports: www.themortgagereports.com/14961/energy-efficient-mortgage-eem-green-mortgages-hud
