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Energy Mortgages
An energy mortgage is a mortgage that credits a home’s energy efficiency in the home loan. For an energy efficient home, for example, it could mean giving the home buyer the ability to buy a higher quality home because of the lower monthly costs of heating and cooling the home. For homes in which the energy efficiency can be improved, this concept allows the money saved in monthly utility bills to finance energy improvements.
Older existing home Same Home with energy improvements.
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Older existing home
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Same Home with energy improvements
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Home price
(90% mortgage, 8% interest) |
$150,000
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$154,816
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| Loan amount |
$135,000
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$139,334
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| Monthly payment* |
$991
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$1023
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| Energy bills |
+$186
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+$93
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| The true monthly cost of home ownership |
$1,177
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$1,116
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| Monthly Savings |
-
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$61
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There are two types of energy mortgages:
- Energy Improvement Mortgage - Finances the energy upgrades of an existing home in the mortgage loan using monthly energy savings
- Energy Efficient Mortgage - Uses the energy savings from a new energy efficient home to increase the home buying power of consumers and capitalizes the energy savings in the appraisal
Countrywide Mortgage |
