Which of these options appeals to you? Buy a house that has a monthly mortgage payment of $1000 and electricity and natural gas bills totaling $250 a month? Or instead, lay out a $1100 a month in mortgage payments and have energy bills of $60 a month, in a house that's energy efficient?
With the second option, you spend less of your income each month for a home that's more comfortable and livable. This is the choice that leads many homebuyers to use an Energy Efficient Mortgage. Energy Efficiency Mortgages provide special benefits for those people who purchase homes that are already energy efficient. They can also provide extra funds for people willing to install energy-saving improvements that make their new homes more efficient. Even if you're remodeling or refinancing your home, you can probably use an Energy Efficiency Mortgage.
This type of easy-to-use home funding is available through the Federal Housing Administration, the Veterans Administration and even such conventional lending programs as Freddie Mac and Fannie Mae. It has been around for over a decade and can be applied to most home mortgages. It can allow homebuyers to stretch their debt-to-income ratios by up to two percent on new and existing homes that meet energy efficiency standards.