Green Value Mortgages are a concrete way for families to both save money and make a large scale change in the way that they live their lives in regard to the ambience.
Here are some facts that will give you an idea of how upgrading your home to a Green Value Mortgage can help you save a lot of money and reduce your home’s carbon footprint:
- Overall, heating and cooling accounts for 60–70% of the total energy used in the average American homes.
- 60% of the existing homes in the U.S are not properly isolated so using the Green Value Mortgages can help with this.
- Updating your home’s insulation can help you save up to 23% on heating and cooling costs or up to 15% of your total yearly energy bill.
- According to the Department of Energy, energy loss from outdated windows accounts for nearly 30% of the annual heating and cooling costs for the average American home.
- Even the most basic double-paned window can reduce the energy use by up to 25% in cold climates during the winter and by up to 19% in hot climate during the summer.
- In houses with central air and heating, about 24% of the air is lost due to faulty, outdated work.
- A new Energy Star rated dishwasher, can save you up to 13% energy (the dishwasher accounts for 3% of your gas or electric bill) and as much as 1.200 gallons of water a year.
- Programmable thermostats can save about 3% on heating bills and more than 4% on cooling bills. These numbers can translate into savings of up to $180 a year.
Green Value Mortgages can help you to do the following:
- Get money to invest in energy efficient upgrades for a new modern house.
- Help you to qualify for a larger mortgage to pay for a house that is already energy efficient.
- Make older home more comfortable and more affordable with lower utility payments.
- Help you to use less energy in order to maintain the temperatures in your home and therefore lessen you family’s footprint.
What is a Green Value Mortgage?
Unlike any other type of mortgages, a Green Value Mortgage takes into consideration a home utility costs when determining how much money to lend a borrower.
The idea behind is that if the borrower's utility bills are lower, you can afford to put more money toward the mortgage payment. The result is the ability to borrow more and possibly to get a better house without spending more per month than you would with a conventional mortgage.
The Benefits of Green Value Mortgages:
A study published in the Appraisal Institute Journal in 1999 documented that for every $1 decrease to a home's annual energy costs, the home's value increases $20.
For example if you saved $100 per month in energy costs for an annual savings of $1200, your home's value would increase by $24k. With the increase over the past 10 years in energy costs, this amount is now higher.
With an EEM, your estimated monthly savings will be applied to your debt to income ratio. The loan officer is allowed to factor the saving into that equation which will either do one of two things:
- Allow the applicant to qualify for a more expensive home
- If you have chosen a home at the top of your price range, the effect of the monthly savings on your debt-to-income ratio will make qualifying easier.
Once the work has been completed, an energy efficient home is a healthier, more comfortable and usually more quiet too.
How much money you might save from living in an energy efficient home depends on a variety of factors, including but not limited to the following:
For example, someone in Kansas where air conditioning use is high in the summer and heater use is higher in the winter, might stand to save more from energy improvements than someone who is living in Arizona's milder climate.
If you're going to buy a large home, the utility bills will be higher than they would for a smaller home. Energy improvements might make more sense as square footage increases.
Age of Home
Older homes that haven't been renovated sometimes lack the energy efficiencies found in newer homes.
When you increase your mortgage payment to pay for energy improvements or to live in an already energy efficient home, you're basically paying interest on something to get it right away instead of waiting until you've saved up the cash to purchase it outright.
So how you can read, Green Value Mortgage is not a marketing or public relations effort. It’s a program backed by private and government mortgage program which is designed to help you make your home more energy efficient.
Today is an opportunity to get better home and lower rate. What are you waiting for?
Contact us now to discover how you can get all Green Value Mortgage benefits too.