What is a Green Mortgage?
Green mortgages are also known as Energy Efficiency Mortgages (EEM) or Energy Improvement Mortgages (EIM).
A green mortgage allows you to roll in the costs of making specific energy saving improvements to the home you are building or purchasing.
Making energy efficiency upgrades to a real estate investment can drastically lower your energy, gas and water consumption, and your monthly utilities. Doing this can actually lower your cost of living expenses every month.
In addition to lowering your total monthly bills, you can receive tax credits from the federal and local governments for many of your improvements.
You properties resale value may actually increase due to the improvements and having an energy efficient home will make the home more attractive to potential home buyers should you decide to sell your home.
Here is an example of how a Energy Efficient Mortgage (EEM)/Green Mortgage can lower your monthly expenses.
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Non- Energy Efficient Home
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Energy Efficient Home
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Purchase Price
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200,000
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200,000
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Loan amount
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200,000
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209,000
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Interest
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5.85%
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5.85%
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Monthly Payment
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1179.88
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1232.98
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Total Avg Utility Bills
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265.00
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111.00
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Total Monthly Expenses
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1,444.88
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1,343.98
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Monthly Savings:
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$ 100.90
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Yearly Savings:
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$ 1,210.80
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Adding solar panels or wind turbines have allowed some green mortgage holders to be free of monthly electric bills altogether. Some energy companies will even pay YOU if your home generates more electricity than you use by giving the unused portion back to the grid. How AWESOME is that!
Check out this video about Energy Audits and their importance when considering a Energy Efficient Mortgage or Green Mortgage.
For more information or help regarding Energy Efficiency Mortgages (EEM), Energy Improvement Mortgages (EIM), Green Mortgages, contact Karen Storey directly or follow this link.
Special Note: EEM’s (Energy Efficient Mortgage / Green Mortgage) can also be used with the FHA Section 203 K Streamline Mortgage 203(k) rehabilitation program and generally follows that program's financing guidelines.
BTW – Energy Efficient Homes are often healthier homes too! Check out our INDOOR AIR QUALITY link for more information.
