Getting Paid to Save with an Energy Efficient Mortgage
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 Traditional Mortgage |
The Gonzalez Family’s |
|
| Initial Loan | $100,000 | $100,000 |
| Cost of Energy Improvements | N/A | $4,000 |
| Adjusted Loan Amount | $100,000 | $104,000 |
| Monthly Mortgage Payment | $880 | $909 |
| Monthly Utilities | $126 |
$71 |
| 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.’
