Passionate About Change 2 Green

Interesting subject I just read from ECOBROKER International and as a certified EcoBroker, I wanted to pass this along to you.


ENERGY-EFFICIENT MORTGAGES

Technology Snapshot & Benefits:

Energy-efficient mortgages are one of the most beneficial and under-utilized programs the consumer can find and capitalize upon in today’s real estate market. An energy-efficient mortgage can add an additional $15,000 to the principal of a new loan or a refinance, often at no additional cost, no compromise in the loan-to-value ratio for the borrower, and sometimes at a better rate. Yes, one pays a bit more in principal and interest, at today’s rates, roughly $30-50 dollars per month, over the course of the loan. 

However, when this extra principal is used to install energy efficiency measures, it is not uncommon for the property owner to realize $75-100 per month in energy cost savings. When working with a lender who offers and understands the energy-efficient mortgage programs available, the steps for the borrower are very straightforward.

Estimated Cost Savings:

There are no additional costs associated with many energy efficient mortgage options, other than the cost of the additional $15,000 in amortized principal and interest (PI). By definition, the savings created by the energy efficiency measures are greater than the additional PI. This provides the assurance lenders need to conclude loans of this nature are good business.

In fact, the attractiveness of the energy efficient mortgage options also extends to lenders. What happens is that as the borrowers make the stated energy efficiency improvements and create monthly utility bill and other savings, their monthly cash-flow improves. This improvement in monthly cash-flow makes the borrower an even more stable and reliable customer, less likely to present the prospect of default.

Issues:
Most energy-efficient financing programs require that the borrower has an energy rating on their existing or new home. A rating typically involves an inspection by a professional energy rater who is certified under a nationally or state accredited home energy rating system (HERS). The Residential Energy Services Network (RESNET) provides a database of Certified Home Energy Raters (http://www.natresnet.org/dir/raters/default.htm) by state.

Regional Issues:

Energy-efficient mortgages and other financing options for energy efficiency improvements are available throughout the U.S. and internationally.
Installation (Getting it Done):

The first easy step is to talk to a few lenders, such as the affiliates here on the site, and then prepare to have a certified energy rater come and conduct the analysis of your property. Your lender will also have suggestions as to energy raters who work with them on energy efficient mortgages, just as your lender has an appraiser with whom he/she works to conduct appraisals.

For more information on energy efficient mortgages, see the links below and the Web sites of our ECOBROKER Affiliates in the lending industry.

More Information On This Topic:

Fannie Mae: Mortgage Products - Energy-Efficient Mortgage
http://www.efanniemae.com/hcd/single_family/mortgage_products/eem.htm

U.S. Department of Energy’s Energy Efficiency and Renewable Energy Clearinghouse: Financing an Energy- Efficient Homehttp://www.nrel.gov/docs/fy00osti/28336.pdf

U.S. Department of Energy’s Energy Efficiency and Renewable Energy Clearinghouse: How an EEM Can Save You Moneyhttp://www.eere.energy.gov/consumerinfo/factsheets/feehome_emm.html

U.S. Department of Energy’s Consumer Energy Information: Elements of an Energy-Efficient House
http://www.nrel.gov/docs/fy00osti/27835.pdf

U.S. Department of Energy’s Consumer Energy Information: HERS Example
http://www.eere.energy.gov/consumerinfo/factsheets/feehome_hers.html

RESNET’S Home Energy Rating System and Energy-Efficient Mortgage 
Information
http://www.natresnet.org/herseems/default.htm

As a person who cares deeply about the human footprint we are leaving on our planet and a real estate professional that specializes in helping people make their home more healthy and energy efficient, I want to let you know one of easiest ways to make your home more energy efficient is to take the first step and Evaluating your homes Energy performance. 

Some of the benefits of doing this are…

Often when I working with a person buying a home I suggest they conduct a home energy rating so they understand the costs of utilities for living in that home, often I see hundreds of dollars in difference in monthly costs between two similar homes. I believe knowledge will help you make better buying and selling decisions.  Call me if you want me to set up a home energy audit for your home, or if you just want to talk about how you can live in a more healthier, energy efficient way. 

Karri Robles
Your Realtor | Ecobroker

The Premier Property Group

Home Energy Ratings - Evaluating Your Home’s Energy Performance

Snapshot & Benefits:
Home energy ratings are performed on new and existing homes to evaluate each home’s energy performance. Home energy ratings are performed on new homes to verify energy performance for programs such as Energy Start Qualified homes. Existing homes may benefit from energy ratings by identifying cost-effective energy-efficiency improvements for the home. Additionally, home energy ratings are utilized by many financial institutions to qualify homes for energy-efficient mortgages.

Estimated Cost Savings:
Home energy ratings can identify cost-effective improvements that potentially save homeowners hundreds of dollars each year.

Issues:
Please be careful not to assume that your home inspector can perform an energy rating. In fact, many do not.

Getting It Done:
Energy ratings are performed by Certified Home Energy Raters. Find a list of qualified raters at the Residential Energy Services Network’s (RESNET’s) online Certified Rater Directory.

More Information On This Topic:

Residential Energy Services Network: About Home Energy Ratings and Mortgages

Residential Energy Services Network: Home Energy Ratings - A Primer

Energy Star: Verification of Energy Star Qualified Homes

Lightly Treading, Inc.

EnergySmiths

Call me direct should you want to schedule a home energy rating for your existing home or for a home you are about to purchase - Important information you need to know! I can connect you to the best Energy Raters in Walton County! 

Be well - and talk soon~

Karri Robles - EcoBroker Energy-Efficient Appliances

Technology Snapshot & Benefits:
Both immediate and indirect economic savings can come from energy-efficient appliances such as refrigerators, horizontal-axis washing machines, clothes dryers, dishwashers, etc. Immediate and continuing savings accrue from lower utility bills for electricity and/or water. The performance levels of these appliances meet, and generally exceed, those of industry “standard” models. As a case in point, consider household refrigeration. By the late 1970s, refrigerators reached their most inefficient performance by requiring about 1750 kiloWatt-hours per year to operate. Modern energy-efficient refrigerators provide the same or better service at 450-550 kiloWatt-hours per year, and they are much quieter in operation.

Estimated Cost Savings:
The direct economic savings achieved by efficient appliances are a function of how much the appliance will be used, the performance level of the equipment being replaced, and local costs for utilities. When you replace older equipment, it is not uncommon for electricity consumption for that appliance to decrease by 50% or more. In general, if the appliance being replaced is more than 15 years old, and it is replaced with a state-of-the-art unit, you may expect utility savings of 20%-60% compared with the energy required by the previous appliance. Horizontal-axis washing machines typically save consumers 50% in both electric and water utilities. Additional savings come from reduced quantities of detergent.

Your monthly electrical bill is for all electricity used by all electrical loads in the building, so changing a single appliance will lower the bill, but in proportion to the amount of electricity formerly used by that appliance. If refrigeration represents 15-20% of your electric bill, a new refrigerator that is twice as efficient as the unit being replaced will lower your total bill by about 7-10%.

Any increase in initial cost is usually more than made up in monthly savings. See ACEEE Consumer Guide to Home Energy Saving for more detailed information on appliances and savings.

Issues:
Availability of the most energy-efficient appliances may be an issue. Sometimes the best equipment is in demand, which can mean that discounts and sale prices are either unavailable or of lower value. Over time, as manufacturers and suppliers clear inventories of less efficient models by offering discounts, expect the price of efficient appliances to come down as well.

Regional Issues:
Primarily, regional issues involve supply, delivery, and installation.

Installation (Getting It Done):
Be sure to price shop and to get two or three (or more) prices. Inquire about installation and removal of your old unit. For any refrigeration unit, be sure that the refrigerant will be removed and recycled responsibly. Refrigerants are very potent greenhouse gases and must be captured and contained. Shopping for price and availability will give you perspective on the true costs of equipment and installation in your area.

More Information on This Topic:

U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy: Energy Savers - Appliances

U.S. Department of Energy’s Building Technologies Program: Dishwasher Tips

U.S. Department of Energy’s Building Technologies Program: Laundry Tips

U.S. Department of Energy’s Building Technologies Program: Refrigerator/Freezer Energy Tips

Energy Star®: Appliances

Energy Star®: Clothes Washers

Energy Star®: Dehumidifiers

Energy Star®: Dishwashers

Energy Star®: Refrigerators

Energy Star®: Room Air Conditioners