If you’re thinking of refinancing your home for remodeling, or you want to buy a house and fix it up, look into an energy-efficient mortgage (EEM) to cover the cost of upgrades. These mortgages let you roll the cost of the energy-related improvements into your home loan, even if you exceed traditional loan limits. Your mortgage payments will go up a little, but because your utility bills will also go down, you may even make a little money. As an example:
|The Murphy Family's
The Gonzalez Family's
|Cost of Energy Improvements||N/A||$4,000|
|Adjusted Loan Amount||$100,000||$104,000|
|Monthly Mortgage Payment||$880||$909|
|Total Monthly Expenses||$1,006||$980|
|Net Savings Per Year||$312|
In this case, the Gonzalez family borrowed $4,000 more up front, but wound up saving $26 per month ($312 per year), and with a home that’s more comfortable and valuable than the Murphys.’
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