Did you know you can buy or remodel a home to increase your energy efficiency and save money with an Energy Efficient Mortgage? I am going to explain energy efficient mortgages and how you can get one.

I am Jodi Bakst a real estate broker in Durham North Carolina. I am GREEN Certified and I developed Array, the neighborhood in Orange County where all of the homes are net-zero energy.

So, what is an Energy Efficient Mortgage? An energy efficient mortgage allows you to borrow up to 15% of your homes’ appraised value to pay for energy efficient upgrades like:

● New double or triple paned windows

● Better insulation and air sealing

● Energy efficient heat pumps

● Energy efficient heat pump water heaters

● Energy efficient appliances, and

● Active solar to name a few.

An Energy Efficient Mortgage is NOT a second loan. This loan will be combined with your mortgage, so that you only make one payment.

If you are purchasing a new home, rather an upgrading an existing home, lenders know energy efficient features will lower your utility bills. This is why you can qualify for a slightly higher mortgage.

To qualify, you must have a Home Energy Assessment. These are done by certified energy raters. The assessment will tell you which energy efficient updates are appropriate for your home, the associated cost of the improvements and the reduction in your energy bill. This information is used by the lender for the energy efficient mortgage.

With the new home, the lender uses the cost of the energy efficient features and the associated reduction in energy costs in that home.

So, what are the benefits of an Energy Efficient Mortgage are:

First, you can roll the cost of the improvements into your loan and not pay for everything out of pocket.

Second, your total mortgage payment should be lower because of the decrease in your utility bills. The lower utility costs should be more than the cost of the energy efficient mortgage.

I am Jodi Bakst with Real Estate Experts. If you have questions about energy efficient mortgages or developing a home buying or home selling strategy associated with green homes reach out to me at [email protected]