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January 6th, 2010

Cold? Warm Up With An Energy-Efficient Mortgage



It seems as though almost the entire nation is caught in the grasp of Old Man Winter. When temperatures in Florida dip into the 30’s you know it’s trouble for lots of folks. Here in the North East, 20 degree temps and howling winds are becoming uncomfortably normal.

With speculation that this winter could be the worst in 25 years, it’s the perfect time to consider making some home improvements that can help to keep your energy bill from soaring through the roof. Whether you’re buying a new home, or looking to retrofit your existing dwelling, there are several energy-efficient options that can both lower your energy bills and get you a tax credit at the same time.

For homebuyers, “An Energy Efficient Mortgage (EEM) is a mortgage that credits a home’s energy efficiency in the mortgage itself,” according to EnergyStar.gov. “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.”

For existing homeowners looking to make energy-efficient improvements, there are a wealth of options available, including the energy-improvement mortgage as well as state and Federal incentives to take advantage of. The president’s “Cash for Caulkers” program is a national incentive that credits homeowners between about $1,000-$3,000 for energy-efficient improvements.

Click here view a list from EnergyStar.gov that runs down which energy-efficient products can get you a Federal tax credit and for how much.

Beyond the Federal programs, individual states are offering their own energy-efficient incentives. To find out what incentives your state has to offer, be sure to check out the “Database of State Incentives for Renewables and Efficiency” (DSIRE).

Energy-efficient homes are becoming a growing focus for the “green” community, since, according to the Boston Globe, “…homes are responsible for 21 percent of the nation’s carbon dioxide emissions, twice as much as passenger cars.”

If your goal is to see your electric meter slow to a crawl, energy-efficient mortgages and improvements are the first step.

Has anyone out there made an energy-efficient improvement to their home? If so, how are they working out?

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3 Responses to “Cold? Warm Up With An Energy-Efficient Mortgage”

  1. SJPadvisor.com Says: January 10th, 2010 at 4:37 pm

    Any investment linked with improving energy efficiency and reducing global warming will be a hit with the buying public, and improve the public image of companies offering such deals. – win win situation

  2. Tim Manni Says: January 12th, 2010 at 2:01 pm


    Thanks for commenting — I couldn’t agree more.


  3. Visionary Realty News » New Poll: How Have You Made Your Home “Green”? Says: April 23rd, 2010 at 6:32 am

    [...] Click here to learn more about Energy Efficient Mortgages, Energy Improvement Mortgages and which energy-efficient products can get you a Federal tax credit and for how much. [...]

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HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

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Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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