PART 1: Lower Costs Through Energy-Efficient Mortgages

I talk about energy-efficient mortgages and the benefits of getting one.


Today starts a two-part series on energy-efficient mortgages. Whether you’re buying or remodeling, you can increase your energy efficiency and save money with an energy-efficient mortgage. But first, what is an energy-efficient mortgage anyway?

An energy-efficient mortgage, or EEM, is a loan that is rolled into your primary mortgage with the purpose of funding energy-efficient improvements. If you are purchasing a home that you want to add energy-efficient features to, you first need to qualify for a normal mortgage, then you can try to get a slightly higher EEM. 

The advantage of this is you can add to your mortgage to fund the improvements so that you only have one payment. The improvements should result in a much lower utility cost, and as a result, the total cost of ownership, the mortgage payments, and the utility costs should all be lower.



Lenders know that your utilities should be lower with an EEM, so this means you may qualify for a slightly higher mortgage than if you hadn’t used an EEM. It is no harder to qualify for an EEM than a regular loan. You can also borrow a significant amount through them, up to 15% of the home’s appraised value. This money can be used for new double pained windows, insulation, energy-efficient heating and cooling, fixing or replacing chimneys, and active or passive solar power.

In part two, we’ll go over how to get an EEM. As always, if you have any questions about green mortgages or anything else real estate-related, give us a call at Real Estate Experts. We’re happy to help.