In this post, Brittney Marino, a writer for Total Mortgage Services, explains energy efficient mortgages.  Saturn has given her the opportunity to “guest post” on our blog.  Please direct any questions regarding the content to Brittney.
How Can an Energy Efficient Mortgage Help Me?
Remodeling your home to become more energy efficient is certainly not cheap. In today’s economy, financing such changes could be tough on you and your family’s budget, causing it to be put on the back burner. However, these expenses do not have to be paid for upfront. You can look into an energy efficient mortgage for help. With this type of mortgage, owning a green home is simple and affordable.

So How Do Energy Efficient Mortgages Work?
An energy efficient mortgage will increase your debt-to-income qualifying ratio, giving you more buying power which will enable you to take out a larger loan amount than you normally would be able to. This excess money is to be used to make your current or future home more efficient. This loan will be incorporated in with your traditional mortgage, so two separate payments are not necessary. Another great benefit to keep in mind is that portions of these mortgages are tax-deductible, unlike if you were to finance your home improvements through another type of loan, credit card, etc.
To qualify for an EEM, your house must go through an energy efficient audit by a trained Energy Rater. This audit, based on a Home Energy Rating System ranging from 1-100, will recommend cost-effective energy upgrades and provide you with estimates of the cost and annual savings, as well as the estimated annual total energy cost before and after the upgrades.
Originally, the thought of a higher mortgage payment might turn you off to the idea of an energy efficient mortgage, but after seeing your annual savings, you will realize that regardless of the higher payment, you will be saving money through lower energy costs. Additionally, when it comes time to sell your house, the value will be significantly higher with all of the improvements that were made.  So if you’re looking to save yourself some money on your utility bills and contribute toward a healthy environment, an energy efficient mortgage is a great option.
Brittney Marino is a writer for Total Mortgage Services.
Check out Saturn’s Homeowner’s Handbook to Energy Efficiency for ideas and practical guidance on how to make your home more efficient and comfortable.