In these days of exorbitant natural gas prices and climbing electricity demand in the midst of one of the hottest summers on record, some homebuyers are turning to the last place one might expect to save money on energy bills – their mortgage lenders.
An energy efficient mortgage allows the homebuyer to roll the cost of energy-friendly improvements into their mortgage, opting for a higher mortgage payment, but lower monthly energy bills. Considering that such essentials as a new furnace or blowing in insulation can cost thousands, this route may be best for new homeowners who are short on start-up cash, but want to make their home as energy-efficient as possible.
Of course, nothing promising or unique comes easily. Many lenders shy away from financing this type of mortgage, because they don’t stand to make much money on them. Additionally, to qualify for the mortgage, the homeowner has to get an appraisal with a Certified Energy Rater in their home state to determine what measures should be taken to make the home as energy-efficient as possible. These appraisals average around $300. Of course, it is also prudent to find a trustworthy contractor or handyman to do the repairs – you don’t want to end up with shoddy or incomplete work and a higher mortgage payment to boot. ■
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