The Energy Efficient Mortgage - Article-Library.Network

Article-Library .Net

More than 90.000 Excellent Articles - Free Content for your Site.


Earn Money. ($73.568) | CNCHobby | Leona Sims | Hosting from 1 euro | Invite Friends. Get Paid.



Search:

Home | Finances


The Energy Efficient Mortgage

By: J Suffie


Add this Article to your website/blog

While you explore the refinancing options available to you, you might want to consider borrowing more than the amount needed to pay off your existing mortgage. You can use the extra money to make energy-efficiency home improvements that might help you save a significant amount over time. If you consider that the interest paid on your mortgage is most likely tax deductible and switching to energy efficient appliances will immediately lower your monthly bill – you might see savings sooner than you think.

What is an Energy Efficient Mortgage?

An energy efficient mortgage is a type of additional mortgage that can be added to an already existing home mortgage. With this type of federally recognized loan, the borrower is eligible for unique benefits related to the purchase of an energy efficient home or energy efficiency remodeling. Benefits include eligibility for financing energy-efficiency measures as a part of your mortgage, updating your home with newer more efficient features and appliances, stretching debt-to-income qualifying ratios on additional loans, and qualifying for a larger loan. When debt-to-income ratios improve, a larger percentage of the borrower's monthly income can be allocated to the mortgage payment. In short, that means the buyer has more borrowing power although his or her income has not changed.

How do I know if my home is energy efficient?

Before trying to gain approval for an energy-efficient mortgage, have a certified home energy rater come to your house and conduct an energy audit. The audit proves to the lender that the home has areas that could benefit from improved energy efficiency and lower the monthly power bill. The cost of improvements needed in these specific areas found to be energy inefficient can then be added to your mortgage.

The U.S. Department of Energy established guidelines for companies offering Home Energy Ratings. Rating should be in the form of a numerical score from 1 to 100. An additional rating based on a range of one to five stars may also be given as well as an estimated energy cost. A higher score indicates greater efficiency. The rater will also identify upgrades that are considered "cost effective." These types of upgrades will save more money through energy savings than they cost to install. A Home Energy Rating conducted by a certified professional will usually cost between $100 and $300. The cost of the rating may be financed as part of the mortgage, covered by the lender, or paid for by the owner.

Am I eligible for an Energy Efficient Mortgage?

Any buyer who can qualify for a home loan can qualify for an energy efficient mortgage. Energy efficient upgrades can be done on most homes, and the loans are available to anyone regardless of location, home value, or existing utility set up. Energy efficiency mortgages can be added to government loans or conventional loans. Your lender will determine your exact benefits based on your home energy rating. In general, an energy efficient mortgage is available for older homes that qualify for upgrades as well as for homes not requiring upgrades in some cases. New construction can also qualify, check with the U.S. Department of Energy, the Alliance to Save Energy, or the Federal Citizen Information Center for more details.
Article Source:http://www.isnare.com

More Articles: http://www.article-library.net

Buying a home? Refinancing your mortgage? There are lots of reasons why you may need to talk to a mortgage broker about a mortgage. Make sure you do your research first. Get all the information you need at: www.refinancingright.com



Add this Article to your website/blog

The Energy Efficient Mortgage

Please Rate this Article

 

Not yet Rated

Click the XML Icon Above to Receive Finances Articles Via RSS!


Additional Articles From - Home | Finances
Sign Up for a free account or learn more.



Submit Articles
Member Login
Top Authors
Most Popular Articles
Submission Guidelines
Ezine Notifications
Article RSS Feeds
Directory
Submit your site for free
Free Content Creator
New Stuff
About Us
Site Blog
Link to Us
Contact Us
Privacy Policy
Terms of Service
Other Links

Google

Sponsors



Extra Information
| A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z |
At least 100.000 Articles

FindingIT

Article-Library.Net


MyEasyDating
Sponsors
Links
elAdvertise

Powered by Article Dashboard