When you hear the word green mortgage, what do you usually think of? This type of mortgage takes into account the efficiency of a home in terms of saving energy. If the borrower’s utility bills are lower, or if it’s intended for investing in home improvements that can lower energy consumption in the home, some lenders offer discount in the standard variable rate. You might be thinking of financing for buying a green home, right? Well, green mortgages are not the kind of mortgage that you apply for when financing a green home.
Are you planning to apply for this kind of loan? Then you need to have your home rated by Home Energy Rating System. There will be a specialist who will visit your Ogden Utah Real Estate and energy-audit your property. The person in charge will calculate how much energy is used by your refrigerator, heating and cooling systems and so on. The rating, which is usually between 1 and 100, is done based on the property’s utility rates, appliances, climate, windows and insulation. The closer your score to 100, the more energy efficient your home is and the more likely that the lender will approve your green mortgage. Energy efficient mortgage (EEM) or eco-mortgage are other names for green mortgages. They are made a little more affordable compared to other types of mortgage.
This kind of mortgage is becoming popular these days. Nowadays, people especially homeowners want to live according to their environmental convictions and live in a clean and safe environment. Living in a less energy-efficient home can affect your monthly mortgage payments especially if it goes up and down every month. In this case, green mortgage has a lot of benefits. It allows you to purchase a bigger and nicer home where utility bills are lower.
There are different types of Green mortgages or Energy Efficient Mortgages that you can choose from – the Veteran’s Administration EEM, the Conventional EEM, and the Federal Housing Administration (FHA) EEM. The VA EEM is generally for eligible members of the military where loan rangers from USD$3000 and USD$6000. The conventional EEM, on the other hand is the projected energy savings obtained after the calculation. This is then added to the amount of the mortgage. The last but not the least is the FHA EEM where potential borrowers can add up to a maximum of 5% of the home’s value to the mortgage amount.
Homeowners must be reminded that an energy-efficient home can save them as much as half of their home energy costs. This savings can inevitably benefit them in the long run. Many people are discovering the benefits of ‘green’ mortgage as housing prices and energy costs are simultaneously rising. Going green may make up still a tiny percentage among homeowners and there is still more information to be released regarding the benefits of green mortgages.
Green mortgage or Energy efficient mortgages (EEM) are becoming popular among home buyers. Talk to your agent if you want to apply for this kind of loan. Make sure that your Somerville MA Real Estate are energy efficient so you can qualify. People can now become an environmentalist even in financing their homes in Smyrna TN.Mail this post