An increased mortgage
scheme from the 1980s has seen a resurgence in popularity in America, as future
homeowner attempt to make their properties more compatible with green energy
solutions. The EEM stands for an Energy Efficient Mortgage, and features a
larger loan which buyers can use to convert to energy-efficient power sources
across the entire property. This could include solar panels, LED light bulbs, double glazing
and insulation.
Research has showed that
residential energy consumption in the USA has declined year-on-year since the
1990s, which is a remarkable statistic when taking into consideration the
amount of technology which has been implemented into homes in this time. The
decrease has been put down to increased awareness of energy issues, and also on
the emphasis placed on schemes such as replacing incandescent light solutions
with their energy-saving light bulb
counterparts. The EEM mortgages help to fund these types of upgrades for all
houses and will surely contribute to an even lower rate of consumption in the
homes of those who take out such mortgages.
The loans amount to no
more than 5% of the original property value, but a home which is fully equipped
with the latest energy-saving lighting solutions, insulation equipment and
energy-efficient technology can end up being sold for much more than it was
originally purchased for. ‘Green’ homes are more attractive to buyers nowadays
and the installation of such features can add thousands to asking prices. These
environmentally-friendly additions to the home will also help the homeowner to
save money whilst they are residents there; their energy costs will decline by
an incredible amount, with savings on heating and electricity almost guaranteed
for a home which has been renovated to ensure efficiency. Also, though the loan
is significantly larger than the original price of the mortgage and the
property, the extra amount granted to buyers does not increase their down
payment and it has no effect on their interest rate. It is simply added to the
existing loan, and the terms of the original mortgage apply.
The Energy Efficient
Mortgage has not taken off in the UK to the extent that it has in the USA as of
yet, but with many lenders and banks introducing green incentives and
assistance to their customers wishing to go ‘green’, the advantages of
converting to sustainable and energy-saving power sources and accessories are
plentiful. Not only are savings almost guaranteed from the minimised use of
power from energy companies, who charge over the odds for their services,
homeowner are contributing to the future by providing ecologically sound homes
for their children and grandchildren.
2 comments:
Energy Efficient Mortgages are alive but not well in the US. Our issue is comfort at POINT OF SALE for Realtors. If more realtors would properly learn the program from a studied mortgage office then more closings of Energy Efficient Mortgages would take place.
Energy Efficient Mortgages are alive but not well in the US. Our issue is comfort at POINT OF SALE for Realtors. If more realtors would properly learn the program from a studied mortgage office then more closings of Energy Efficient Mortgages would take place.
Post a Comment