Energy Efficient Mortgage (EEM) provides a solution to the recent problematic soaring prices in energy. However, being a new real estate innovation in mortgages, EEM is a mystery to many, and the majority those people cling to old expensive home loan mortgages.
But to those who have received the great news of this cheaper way of financing using an energy-related home loan- Energy Efficient Mortgage, also known as a green mortgage, have reported of not only cheaper costs but also cool’, warm and comfortable homes.
How EEM Operate
Energy Efficient Mortgage is easy to use home loan service. If you get approved for a government-backed loan like an FHA, you will be able to find EEM programs to help make provisions for your energy efficient home.
It is a home mortgage package offered by private and government financing institutions. An increasing number of banks are including EEM in their home loan options, making it much easier for people to access this service.
EEM helps home owners in two main ways; first, it provides buyers of new homes with special benefits for an energy-efficient home; and secondly, for home owners whose homes are not energy efficient, EEM helps them to make energy-saving improvements.
A home with energy-efficient installations guarantees the home owner of extra cash in their pockets at every end of the month. These monthly savings create a ripple effect on other home finances. For example, the saved cash could be used for other meaningful domestic expenses, such as house improvements and furnishings.
Energy-saving improvements are a part of EEM in that people can borrow money to fund the renovation of their home to include energy-saving improvements. These improvements give home owners of already established homes an opportunity to cut on their monthly bills through an installation of energy-efficient facilities. Such improvements that EEM caters to include; solar water heaters, water heater insulation, solar heating and cooling systems, heat pumps, and clock thermostats, among others.
Benefits of Energy Efficient Mortgage
1. It is easy to access and secure this mortgage.
2. The buyers are guaranteed a larger loan amount and better home.
3. The buyers get to enjoy low life-time costs which also means that their monthly savings increase hence can improve their homes even the more.
4. In case the buyer needs to re-sell the house, the low costs can act as ideal promotional specs for attracting buyers.
5. Real-Estate business people can build more energy efficient homes, which means they can make quick money and thereby translate to an improved economy even as new home owners get to run their homes more efficiently
6. In the highly competitive real-estate business, EEM houses stand out among the other houses, hence a good opportunity for sellers to make more money while still saving on energy and costs.
7. Through EEM, home owners can live in comfortable and affordable homes.
8. EEM provides employment opportunities for electricians, technicians, and business consultants.
Requirements for EEM
Before a home owner is granted an Energy Efficient Mortgage (EEM), he or she must first be assessed through a home energy assessment. The purpose is not to check any qualifications, but mainly to provide the home owner with an overview of the necessary improvements, including their cost for the entire development process.
However, the only qualification assessment that needs to be done is the qualification of assessors. A qualified assessor needs to be in certified and undergone training in one of these; Building Performance Institute Home Energy Professional Energy Auditor, Building Performance Institute Building Analyst Professional, and Residential Energy Service Network Home Energy Rater.
After the assessment, the buyer is issued with a Home Energy Rating System Report (HERS) and charged approximately $300-450 for the service, depending on the home size and input. The report contains the costs of each needed improvement and the charge for the service. The buyer then presents that to any EEM financing institutions for the funds. Examples of such organizations include; FHA and VA (government) and Freddie Mac and Fannie Mae (Private).
When used in purchasing an energy-efficient home, or making energy-saving improvements, EEM is a consideration that potential or existing home owners need to make. Apart from guaranteeing their pockets of extra cash every end of the month, EEM also makes homes comfortable and affordable to live in.