Green mortgages, often called Energy Efficient Mortgages (EEMs) or Energy Improvement Mortgages(EIMs), provide money-saving discounts or a larger loan than normally permitted as a reward for making energy-efficient improvements or for buying a home that meets efficiency measures. These mortgages are structured the same way as other fixed or adjustable rate mortgages, making it a feasible option for those who are looking to make green home improvements. And, since these mortgages are based on the premise that utility bills will be less, and the savings translates into income, qualifying a homebuyer to purchase a more expensive home.
Even though EEMS have been around since the 1970s, they still make up a very small amount of all mortgages. This is due to the fact that explaining these types of mortgages to consumers can be complex, and up until 2003, the forms and processing of the loans was overwhelming for lenders. Since then, most of the cumbersome processing issues have been alleviated, but it still takes time and research to find a green lender. Experts say that demand for the green mortgage exists and is expected to climb as more and more homebuyers are faced with high housing prices and surging energy costs.
So how does a person go about seeking out an EEM? Basic information is available at the Federal Citizen Information Center. A small U.S. company called Mortgagegreen offers Greensave loans as well as buying 27,000 pounds of carbon offsets (about what the average U.S. home produces in a year) for each loan transaction completed.
Homeowners can also take advantage of the Emergency Economic Stabilization Act of 2008, which gives tax credits to consumers who conserve energy. The Energy Star website has a complete summary of energy efficiency tax credits available to consumers.
These improvements not only help our planet, but they also save homeowners money. Banks and lenders need to generate more awareness of this product, which in turn, can help bolster the economy via increased green jobs and industry.
Source: BecauseAction.com
