Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
The conventional Energy Efficient Mortgage is designed to help home buyers add energy efficient features to their existing homes or to new homes they purchase. The goal of the energy efficient mortgage is to lower energy bills on houses due to the new energy efficient upgrades. These loans are backed by Fannie Mae and Freddie Mac.
Lower Utility Bills
If homeowners pay less for their utility bills, they will be able to afford a higher mortgage payment. Lower utility bills are used in the mortgage calculation to allow homeowners to qualify for larger mortgages than they would have normally.
The home must have an inspection conducted by an approved person qualified to measure the cost and value of the improvements to be made. The energy efficient mortgage includes the total cost of the energy efficiency improvements in the loan amount. This allows the home buyer to finance these costs over the life of the loan. The higher loan payments are offset by the lower energy bills.
Energy efficient improvements can reduce a home’s energy use by up to 30 percent. Anything that improves the efficiency of the home will be covered by this mortgage. Typical improvements can include adding insulation, installing energy efficient windows or doors, and replacing a heating/cooling system.
- 3 Common Short Sale Mistakes
- 3 Factors that Can Negatively Affect Your Mortgage Application
- Second Mortgages: Advantages and Disadvantages
- What To Do When Mortgages Default
- Home Equity Loans for People with Bad Credit
- What Lenders Don't Reveal About Home Equity Loans
- Alternatives to Getting a 2nd Mortgage
- FHA Loans for a First-Time Home Buyer
- Should You Refinance? Make Sure the Timing is Right