What is an Energy-Efficient Mortgage?
As the world becomes more aware of the impact of climate change, there is an increasing emphasis on energy efficiency in homes and buildings. One way to encourage energy-efficient upgrades is through the use of energy-efficient mortgages (EEMs).
An EEM is a type of mortgage that allows borrowers to finance energy-saving upgrades when purchasing or refinancing a home. These upgrades can include things like insulation, efficient heating and cooling systems, windows, and solar panels. By financing these upgrades through an EEM, borrowers can save money on their energy bills and potentially increase the value of their homes.
In recent years, there has been a growing interest in EEM’s, both from borrowers and lenders. The U.S. Federal Housing Administration (FHA) has offered EEMs since the 1990s, and more recently, the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) have also introduced EEM programs.
Overall, energy-efficient mortgages can provide a win-win solution for both homeowners and the environment. Homeowners can save money on energy bills, while also reducing their carbon footprint, and lenders can provide a valuable service to borrowers while also promoting sustainability. Read more about this: What Is An Energy-Efficient Mortgage?
Cheers!
Randy Plumlee
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