What do EEMs and Utility rates have in common? Everything!
As energy rates rise, so does the demand for Energy Efficient Mortgages. But while FHA and VA are offering these, there is still resistence in the markeplace by lender and real estate practitioners. Why? Most likey due to lack of knowledge and expertise. After all, if you could buy a $250,000 house with an electric bill of $250/mo (avg yearly) verses a $260,000 house with a $45/mo electric bill, which house would you buy?
It's a no brainer, but lets look at the math to explain
for those who are not in the industry or need to see the math to believe.
Monthly perspective:
With energy upgrades you could save as much as $130/month immediately therefore the Payback period or Return On Investment is in year 1. Meaning, from the beginning you will see a cost savings.
Annual perspective:
Save $1,560.
30 year perspective:
Save $ 46,800.
Some may argue that people move every 5-7 years. In realty,that's a statistical skey resulting from National Association of Realtors research that includes re-financing and those who move often; its an average not a median or mode. Most people live in the same home closer to 7-10 years if you ask around; although each market is unique. I'm in military community but my clients tend to hold their home as a rental property with the intention to to return so it holds true to the 7-10 year common place here. But even if they did move every year, they get the savings immediately therefore has a positive impact by increasing their home value in the consumer's eyes.
The bottom line is this, green doesn't always cost more green.
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