Going Green: Heres the Money

Making your home more green is good on every level. It can save energy and money and frankly it feels good.
The govt has a vested interest in helping you go green. The EEM or energy efficient mortgage is a way Fannie Mae and Freddie Mac among others are providing money for homes for green upgrades such as efficient water heaters and appliances as well as larger projects like solar.

Its the Government, so of course, there is process and procedure. First you need a special report called a HERS report. Here inspectors will come out and review your home's energy efficiency. If the improvements can create significant energy savings money can be made available for the upgrade by using the EEM mortgage.

A HERS report includes suggested home energy upgrades, estimated costs and annual savings before and after upgrades. A HERS rating exam typically costs $100-$300. EEM loans are available commercially as well as through the Federal Housing Authority (FHA), Veterans Affairs (VA) EEMs, Fannie Mae and Freddie Mac. The inspection generally costs $200-300. If you think that the improvements are significant then this is one good way to borrow for this purpose on a long term basis.

Will I Benefit:

Check Out the Chart
.............................................. Older existing home.............Same Home with energy improvements

(90% mortgage, 8% interest)....$150,000........................$154,816
Loan amount...............................$135,000.........................$139,334
Monthly payment*.....................$991.................................$1023
Energy bills..................................$186..................................$93
Cost of home ownership.............$1,177...............................$1,116
Monthly savings....................................................$61
Source: Federal Citizen Information Center

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