Energy-Efficient-Mortgage
Energy Tax Credits

An energy-efficient-mortgage enables home energy upgrades which you may have thought financially out of your hands. Visit your local green-home-lenders to see what you can do if purchasing a home or looking to make environmentally friendly home energy improvements.

If lowering your monthly utility bills is an issue, as it should be for all of us, a green-mortgage may be what you are looking for.

Whether you are a first-time home buyer, or considering making substantial renovations in your current home in terms of minimizing your carbon-footprint, energy-efficient-mortgages are being offered by numerous lending institutions now.

You may have heard the term "green-mortgage."

What this means, is an additional amount of money lended to make necessary home improvements and energy efficient upgrades. The payment is rolled into your primary mortgage which still equals one payment per month.

You may already be doing all you can do
to be greener around your home.

Many of us are composting, recycling as much as possible, trying not to use our dryers too much, being a little more frugal when it comes to purchases, and being fanatics about turning off lights that aren't being used. It's a great way to save on expenses, but sometimes some of these things can be a bit futile, if the bigger problems aren't solved first.

There are typical upgrades to our homes that are just plain expensive, and hard to fit into the everyday budget.

The green-mortgage can give the ability to borrow more to pay for these energy efficient upgrades, and drastically reduce bills for heating and cooling for example, to make for a much more environmentally-friendly and more comfortable living space.

Typical upgrades looked at?

New energy efficient windows, new insulation, tankless water heaters, or maybe an HVAC system are possibilities. These items may be expensive at first, but in the long run, will make your home easier to maintain financially and enable you to be more comfortable.

The energy-efficient-mortgage, or "EEM" as it is also referred to, does have it's limits in some cases.

First of all, normally a Home Energy Rating System report is needed. This is based on an official inspection and report about the home and what it needs. In other words, need is not based exactly on what you desire, but what is needed. You may be able to get dollars to upgrade your windows, but it doesn't mean you are entitled to make your home a fully solar run home. Something like "solar" may apply to a business only.

This brings up other point. The green-mortgage isn't only for residential home-owners.

Businesses can apply as well, and an energy-efficient-mortgage may be the ticket for them in terms of providing money for things like hybrid vehicles for their work related fleet of vehicles, wind, geothermal and solar resources, more energy effective power sources, sky-lites and more.

There are a number of different names given to the energy-efficient-mortgage depending where you live.

In Canada, there is the Canadian Housing and Mortgage Association and TD Trust who may give interest free green- mortgage loans up to 10,000 dollars for buying or building a greener home, or making the existing home much more energy efficient.

TD Trust provides a green mortgage rebate that includes Canadian Standards Associated approved solar panels.

In the UK, there is the Ecology Building Society that says homeowners must meet a certain energy standard rating to qualify for a discount on their mortgage loan.

In the US, there are what is called Streamlined or Greensave loans. Mortgage Green in the US will also buy carbon offsets (for each transaction completed) that is approximately equal to what the average home produces.

Green mortgage companies not only provide financial incentives for you to go green.

They do other things as well which includes planting trees, purchasing carbon offsets on your behalf, help you to keep track of your progress with carbon footprint reduction, contribute to worthwhile causes concerning the environment and be committed to being a carbon neutral business themselves. When lowering total monthly utilities because of improvements, you may be eligible for energy tax credits from federal and local governments. Depending on the improvements you have made, these credits can be very worthwhile and put extra money in your pocket.

Once the improvements are made, not only will your property increase in value because of the improved energy efficiency, but your home will be that much more appealing and attractive to other buyers if you decide to sell.

Energy saving improvements are very important these days even much more than cosmetics. Appearances can be tackled later.

So, if you are in the marketplace for a new home or need improvements to your existing residence, check around for the environmentally friendly mortgage services out there by talking to your Real Estate office or bank that may be at your disposal.

By shopping around and approaching the proper green mortgage lenders, an energy-efficient-mortgage could serve you very well.

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