Going Green Can Save You Greens: Getting the Best Real Estate Investment Loan
Anybody who is contemplating on getting started on building home equity at once can look into a real estate investment loan program that also decreases the negative impact on the environment. An Energy Efficient Mortgage, or EEM, gives homeowners a chance to borrow up to 15 percent more on their loan than the home’s assessed worth.
Homeowners can actually boost their comfort and simultaneously save more money by using this type of real estate investment loan. EEM, which can be applied to nearly all home mortgages and is federally acknowledged, entails that the money be spent on enhancements that would render a house more energy efficient.
An EEM gives borrowers exceptional advantages. This real estate investment loan offers two choices: to finance energy improvements and to increase one’s buying ability. As part of the mortgage, borrowers can invest in energy enhancements and lucrative energy-saving actions. By using loans for energy-efficient homes, borrowers can also expand their debt-to-income qualifying ratios and be eligible for a bigger loan amount.
Whether you are a buyer, a seller or a remodeler/refinancer, you stand to gain from the various benefits offered by this real estate investment loan called EEM.
Buyers can:
• qualify for a bigger loan on a superior home;
• be able to set aside savings every month right from the start;
• get a more comfortable home immediately; and
• add to the potential resale price of a home.
Sellers can:
• sell their home without delay;
• enable a home’s affordability; and
• draw interest in a crowded market.
Meanwhile, remodelers/refinancers can:
• attain all the EEM advantages without having to move;
• make money-saving enhancements; and
• likewise make the chances of a potential resale value of a home better.
To make a home more cost-effective energy-wise, homeowners with a $100,000 home may need to shell out an extra $10,000. Also, using the typical 30-year mortgage rate, a homeowner’s monthly payment may rise by approximately $60. The usual monthly bill savings for homeowners who spend $10,000 on energy improvements is around $120, which indicates a savings of $60 each month.
Aside from the savings that an Energy Efficient Mortgage brings, it is also beneficial for the environment. Normally, a home releases between four and six tons of greenhouse gases in a year. But with the energy enhancements that can be achieved by utilizing this real estate investment loan, the amount of harmful gases can be reduced by two to four tons.
Although EEMs as one of the real estate investment loan alternatives offered have been present since 1979, only a small number of people are aware of its existence. Also, numerous mortgage institutions are not aware of the procedures in applying for one.
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