Comparing a Standard Home Mortgage to an Energy Efficient Mortgage

Banks are increasingly recognizing the fact that a homeowner who spends money to improve the energy efficiency of their home ends up have extra money in their pocket at the end of the month - and this can help tip the balance in your favor of getting a higher mortgage amount with an Energy Efficient Mortgage.

Fannie Mae has published the following comparison of a standard home mortgage to an energy efficient home mortgage. Keep in mind this was published a while ago and mortgage rates are even LOWER right now, so your savings could be higher.

	Non Energy Efficient Home	Energy Efficient Home
Purchaser Price	$200,000	$203,000
Borrower Contribution	$6,000	$6,090
Loan Amount	$160,000	$162,400
Interest	5.85%	5.85%
Monthly PITI	$1673	$1698
Average electric Bill	$186	$93
Total Expenses	$1859	$1791
Qualifying Income	$49,000	$48,584
Monthly Savings		$68

Note this example also assumes a builder will charge more for an energy efficient home, but as competition increases and technology improves this is becoming less of a factor. Again, this means your savings could be even higher!

For more information, see CyberGreenRealty's blog.

-TMC