Comparing a Standard Home Mortgage to an Energy Efficient Mortgage

By
Real Estate Agent with RE/MAX Results

Banks are increasingly recognizing the fact that a homeowner who spends money to improve the energy efficiency of their home ends up have extra money in their pocket at the end of the month - and this can help tip the balance in your favor of getting a higher mortgage amount with an Energy Efficient Mortgage.

Fannie Mae has published the following comparison of a standard home mortgage to an energy efficient home mortgage. Keep in mind this was published a while ago and mortgage rates are even LOWER right now, so your savings could be higher.


 

Non Energy Efficient Home

Energy Efficient Home

Purchaser Price

$200,000

$203,000

Borrower Contribution

$6,000

$6,090

Loan Amount

$160,000

$162,400

Interest

5.85%

5.85%

Monthly PITI

$1673

$1698

Average electric Bill

$186

$93

Total Expenses

$1859

$1791

Qualifying Income

$49,000

$48,584

Monthly Savings

 

$68


Note this example also assumes a builder will charge more for an energy efficient home, but as competition increases and technology improves this is becoming less of a factor. Again, this means your savings could be even higher!

For more information, see CyberGreenRealty's blog.


-TMC
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Rainer
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Tim Green
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I love looking at homes. Best of luck to you this weekend.

Jun 26, 2009 01:36 PM #1
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