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Energy Efficient Mortgages are great solutions for homebuyers looking to purchase or renovate a property with sustainable and energy saving upgrades. Over-use and over-consumption of energy can lead to an increase of greenhouse gasses, air pollution, and more money out of your wallet. According to the Office of Energy Efficiency and Renewable Energy, residential homes account for more than 20% of the total energy consumption in the United States.
When you have energy efficient appliances and systems in your home, you’re using less energy for your home’s primary functions. By reducing air leaks and heat exchange, your HVAC and heating systems won’t have to work as hard to move and filter air throughout your home. A smart thermostat also allows homeowners to include heating and cooling on a schedule, thus reducing the need to for adjustments and energy over-consumption.
As well as lower utility bills, energy efficient home improvements often have a high return on investment. This means their benefits and reselling value are higher than the initial installation costs. According to Energy Star, an energy-efficient water-pump heater may cost $700 more than a standard device, it could save up to $3,500 over the lifetime of the machine. Additionally, a study from GreenLancer found that solar panels help homeowners save about $2,000 per year on their energy bills. There may also be federal and state tax benefits for homeowners who invest in clean energy and sustainability. To learn more about these benefits, it’s best to contact your Loan Originator and consult with your tax advisor.
An analysis from Zillow found that homes with green features sold about seven days faster and for 1.4% more money than homes without. In a study by the National Association of Realtors, 63% of agents and brokers reported that promoting energy efficiency in property listings hold value for potential homebuyers. In the same study, 48% of homebuyers were concerned with sustainability and rated energy-efficient windows, doors, and insulation as “very important” in their home searches.
Older HVAC and heating systems generally don’t run as efficiently or as clean as more energy efficient or newer systems. Older heating systems may lead to a larger carbon footprint. Energy efficient systems are designed with improved ventilation to improve air quality and reduce air-borne allergens. In addition, with improved insulation and a smart, programmable thermostat, your home won’t be as affected by air leaks and poor humidity.
Energy Efficient Mortgages are great solutions that save homeowners money and energy, all while having a positive impact on the environment! To learn more about if an Energy Efficient Mortgage is the right financing decision for you, contact us today! Our experienced Loan Originators are waiting to connect with you to make your sustainable home dreams come true.
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.