Living green has many great advantages but we all know it can come at a cost. Often times we just can’t afford to make those energy efficient retrofits to our home. No matter how bad we wanted those double pane windows, we continue to put it off because we lack funds for the project. However, what most people don’t know is that they can potentially finance their green passion and still come out ahead financially.
Enter Energy Efficient Mortgages! Here is the official lowdown: “An Energy Efficient Mortgage (EEM) is a mortgage that credits a home’s energy efficiency in the mortgage itself. EEMs give borrowers the opportunity to finance cost-effective, energy-saving measures as part of a single mortgage and stretch debt-to-income qualifying ratios on loans thereby allowing borrowers to qualify for a larger loan amount and a better, more energy-efficient home.”
Follow these steps to fund your green home project by refinancing with an EEM:
1) Get a Home Energy Rating Systems Report
The first thing you will need to do is get the home inspected by a professional Energy Rater. The Energy Rater will inspect the house, looking at appliances, windows, roofing, basically anything that will have an effect on your energy consumption. After his inspection, he will rate your house on a scale of 1-100. The lower the score, the more (more…)