It takes money to make money, and your energy saving home improvements will require a certain amount of cash outlay. If you don't have a large budget on hand, there are options available.
If you are making plans to renew or refinance your mortgage, talk to your bank about borrowing a little extra to invest in making your home more energy wise. These improvements will immediately lower your monthly energy bills, and the interest on your home equity loan and mortgage may be tax deductible.
Energy Efficient Mortgages
An energy efficient mortgage is another good option to consider. Think about your car, and the real costs like maintenance and operating expenses that come with it. The same holds true for a home. Utility costs are always going up, so you'll need to factor this into your estimated costs of home ownership. An Energy Efficient Mortgage, or E. E. M., can increase your comfort and save you money whether you are buying, selling, refinancing or remodeling your home.
This type of plan is available with most home mortgages and can provide special benefits to borrowers who are either buying energy efficient homes or installing energy efficient improvements. When you utility bills are lower, you'll have more money in your pocket at the end of each month. Then, you are free to allocate a larger portion of your income to housing expenses.
There are many benefits to financing your energy efficient home improvements through an EEM:
* Qualifying for a larger loan amount allows you to purchase a better, more energy efficient home.
* Your cost-effective energy saving measures may factor in to your mortgage.
* Improving and updating older homes can make them more comfortable and efficient
* Stretch your debt-to-income qualifying ratio with a loan for energy-efficient homes.
* This type of plan can increase your overall buying power.
Other Financing Options
Some utility providers and energy-efficient businesses offer loans and incentives to homeowners. As a property owner, you can use these incentives for projects like new heating and air conditioning systems, insulation, windows and other energy efficiency improvements. You might also find a range of improvements offered by utility companies to help you enjoy greater efficiency. In the United States, the Edison Electric Institute (E. E. I.) provides a list of member company programs that offer energy efficient services to businesses, homeowners and industrial plants.
Many more energy efficient services and ideas are available online. Try searching for information on the National Energy Affordability and Accessibility Project (N. E. A. P. P) site.
If you're thinking of renovating, make energy efficient home improvements your first priority. Your monthly savings will quickly make up for the initial building costs, and you'll be helping to preserve our priceless energy resources.
About the Author
Author Tobias Reibber is a writer for a variety of web magazines, on family matter and home repair topics.
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