Make Your Home More Energy Efficient with a Green Mortgage

by Brentt Taylor, MortgageLoan.com Homeowners are responsible for 41% of the United State’s annual energy consumption. That percentage is down from a decade ago, but it is still nearly half of all energy consumption in the United States, a striking number considering the necessary energy output for all U.S. businesses. Homes need to become more energy efficient still. Government Support for Energy Efficiency Regardless of your political party affiliation, you certainly have the support of your government to bring more efficient energy solutions to your home. Since 2008, major legislations have passed allowing subsidization for purchases of appliances that consume less energy and work more efficiently. The government offers tax credits for such purchases as double-paned windows, low-water-usage appliances such as dishwashers and washing machines, low-energy systems like efficient dryers and tankless water heaters and insulation. You can even take out a Green Mortgage to help you find specific home improvements fit to make your house more energy efficient. Those who believe they can’t afford new insulation are eligible, in some cases, to ball such improvement into their Green Mortgage and thereby pay a single monthly payment that’s affordable on a tight budget. The government has gone to great lengths to reduce energy expenditures in the residential district. How A Green Mortgage Works You’ve already pulled a first mortgage on your home, and so you think that a Green Mortgage (also known as an Energy Efficient Mortgage or EEM) would act as a second mortgage. This is not the case. The EEM is created separately from your mortgage but rolled into the original mortgage so you make only one monthly payment. If you qualified for a primary mortgage, you’ll already have qualified for an EEM. They’re insured by the Federal Housing Authority and the Veterans Association (VA). To get one, all you need to do is talk to your bank, loan association or other qualified mortgage lenders. You make the upgrades and begin saving money.Making the Best of an Energy Efficient Mortgage (EEM) Now you’ve got the capital to replace your appliances and insulation. Consider how to make the biggest impact with your mortgage funds.

• Energy efficient windows reduce heating and cooling costs by as much as 25%.
• New insulation can reduce heating and cooling costs by as much as 22%.
• A new Energy Star refrigerator/freezer is at least three times as efficient as those made before 2010.
• New washers and dryers can reduce energy output by as much as 18%.

Run the figures to see what you can get from an EEM and spend that money to save you the most possible. If your insulation is newer, but you have old windows, don’t update the insulation again, but instead make your windows the highlight of your home. And if you have appliances from the 1980s, put those in the trash and update them. You’ll save money in the long run and help transform the world into a greener place. Search for qualified mortgage lenders through the ENERGY STAR Partner Locator. Get more expert advice on a variety of home improvement topics.