Our Environment

Many current home owners in the US and UK are approaching the adjustment period on the ARM’s (adjustable rate mortgages) that were used to purchase homes during the housing boom in the early 2000’s. Once again, although due to different economic circumstances, interest rates are at historic lows and the mortgage industry is struggling to retain customers.

There are many options available when re-financing. Green mortgages are becoming very popular since they give you a benefit for energy efficiency upgrades made to your home.

Here are some common questions asked about green mortgages:

What types of green mortgages are available?
The most common is the energy efficiency subsidy that actually discounts your interest rate for meeting the requirements. Also available is the donation type green mortgage. This usually involves a donation by the lender to an ecological organization that will in turn plant trees for carbon offset or promote other sustainability programs.

How can I qualify for a green mortgage?
In the US, you will need to make sure that your home is Energy Star compliant. This means that the home uses 15% less energy than the minimum federal requirements. If your home was built energy start compliant, you will most likely have a sticker on the breaker box of the home.

Can I get a green bad credit remortgage?
Yes, even with a low credit score you may be able to qualify if your house meets the energy efficiency requirements.

Where can I learn more?
Visit the Green Mortgages Guide for more details about qualifying for a green mortgage or remortgage.

In this time of depressed real estate values it is important to find ways to increase home value and decrease your own energy costs. Remember that many prospective home buyers will look closely at your utility bills during the past year before making an offer.

Here are a few ways that you can increase your home’s energy efficiency and add value.

Decrease Your House’s Thermal Envelope
The thermal envelope includes the wall, floor, roof, windows, insulation, and weather stripping. In other words, anything that creates a barrier between you and the outside. Each of these elements affects the amount of energy used for heating and cooling. Improvements can include storm windows and doors, upgraded weather stripping, and proper insulation.

Decrease Energy Used by Appliances
This means using modern appliances whenever possible. Heating and cooling systems made over 10 years ago are over 40% less efficient than those made today. The same is true of washing and drying machines, dishwashers, and conventional ovens.

Utilize Natural and Fluorescent Lighting
Just replacing 25% of your incandescent lights with fluorescents can decrease your light bill by 50%. Look for areas in your house where a change in shutters or curtains will allow light in during day light hours. This will cut energy use considerably during the day and give your house a natural feel.

Eco living, saving money, and helping the environment go hand and hand.

The number of green mortgages, otherwise known as Energy Efficiency Mortgages, has increased in recent years. This is due in part to the increased public awareness of energy consumption as well as the financial advantages associated with owning an energy efficient home.

Traditional mortgages are based on a person’s debt to income ratio only, while a green mortgage applies the money saved each month in energy cost as income. This allows home buyers to qualify for a larger loan. This also presents an opportunity for those wishing to remortgage, since energy saving home improvements can be applied once an existing home is certified by a home energy rater.

Purchasing an energy efficient home also increases the resale value by as much as 5%. A $200,000 home that is certified as meeting efficiency requirements, on average, will realize an increase of $11,000 over a comparable home that is not certified. In addition, US home owners can take advantage of the Energy Policy Act which gives tax benefits to those who conserve energy.

More and more frequently when potential home buyers compare mortgages, they find that going green not only helps the environment, but their wallets as well.