You check the gas mileage on a car before you buy it, right?

By
Mortgage and Lending with MSU Federal Credit Union

It just makes sense, doesn't it?   Of course you would check the mpg on a car/truck before buying it, wouldn't you?   I mean, how many times has someone asked you 'how many miles to the gallon do you get?' and you just shrug, and say, 'no clue.'??    Yep, probably doesn't happen!  

  So, why the heck don't people check the efficieny on a home prior to buying it?   Part of the obstacle lies in the fact that it is not necessary to disclose utility information upon selling.   And, another part of it is that most people don't realize that there are 'energy efficient' mortgages out there!    I've been in the business for 10 years, and just learned about these loans a couple of years ago - turns out, they've been around for years, just hasn't caught on.   It's one of those things, until it affects you, you don't really pay that much attention.  

What exactly does an energy efficient mortgage do?    Well, 4 things really:

1.  Added value to the home.   Yes, one of the few ways to actually have value increase in today's market - turn your home into an energy efficient one!   (Each dollar you spend on energy efficient improvements is added to the current value of the home)

2. It calculates a monthly savings on utilities.  (For example, the new insulation is forecasted to save you $500 over the next year.  That's just over $41 per month savings.)

3.  Qualify for more home.  (The savings from above is added directly to your income.   So, if you currently make $2500/month, the lender adds the energy-efficient savings to the monthly income)

4.  Added comfort.  The savings is fantastic, which is the real driver of this, however, nothing beats having a comfortable, non-drafty home!  

And, yes, you guessed it, I just happen to offer 'Energy Efficient' Loans!!   Seriously, if you have any questions regarding this type of loan, please don't hesitate to ask!

And, definitely don't hesitate to find out about a home's utility bills!!   Remember, it only makes sense!

Comments (3)

Aaron Fox
Century 21 Looking Glass - Grand Ledge, MI
e-PRO

Denya, Sounds like a great program! I may actually have a few clients they may be interested!

Aaron

www.AaronSellsRealEstate.com

Nov 06, 2008 01:25 AM
Brenda Carus
Century 21 Zwygart Real Estate - Monroe, WI

I just recently blogged about these too.  EEMs are interesting in that they have been around so long, but are under the radar for so many lenders, realtors and buyers. 

Nov 06, 2008 07:21 AM
Denya Shimnoski
MSU Federal Credit Union - Lansing, MI

Aaron -

I'd love to help your clients- even if it's just to gain a better understanding of what this loan offers!!

Thanks!

Denya

Nov 07, 2008 02:18 AM