Energy-Efficient Mortgages: What to Know


Homebuyers, have you ever heard of a “green mortgage”? If you’re looking to save cash while helping preserve the environment, an energy-efficient mortgage (also known as EEM,) may be something to consider. A recent article from REALTOR Magazine shares the ins and outs of the green mortgage lending process, how to improve your home’s energy efficiency and more. We’ve pulled out some of the key insights for you here:

  • WHAT: An energy-efficient mortgage allows buyers to fold expenses for energy-saving home improvements into their mortgage.
  • WHEN: EEMs are an option if you’re buying or building a home and you want to add energy-efficient features, if you’re refinancing a mortgage for a home you already own and want to add energy-efficient renovations, or if you’re buying a new home that is already energy-efficient.
  • WHY: The idea is that, in the long run, the money saved on monthly utility bills will offset the higher mortgage payment. The projected energy savings from the lower bills could also qualify buyers for a larger loan amount and a better, more energy-efficient home. And at the point of resale, homeowners will likely benefit again, as the energy upgrades can boost the home’s value and attract buyers in a competitive market.

What do you think? Would you consider a “green mortgage”? Share your thoughts in the comments below!

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Melissa feels at home writing – in her role as director of public relations and internal communications for ERA Real Estate and as co-editor of Owning the Fence. With more than 20 years of experience in corporate communications, she provides a new spin on a variety of topics. If she could live anywhere, she’d pack her bags for Southern Italy in a heartbeat.