Custom home with a custom hood in the kitchen.

Benefits of a Green Mortgage

The home has definitely turned into the live work and play of 2020. COVID-19 has caused many to rethink rooms and turn them into home offices and exercise rooms. The overall need for our home has changed due to shelter-in-place.

Energy usage has also gone up as we are staying home more than ever. According to Freddie Mac, March saw a 22% higher household electrical usage than March of 2019. The biggest consumption was midday between 10 am to 3 pm. Shelter-in place caused the nation to live work and play in their homes 24/7. On average there was a $25 increase to monthly utility bills the month of April.

COVID-19 will not be going away anytime soon, and shelter-in-place could be a likely possibility for us in the near future. Homeowners are looking for ways to cut back on energy consumption.

Energy-efficient appliances are a good way to conserve energy and cut down on the cost of utility bills. Other options to reduce energy consumption are updated HVAC units, new windows, and new doors. Sealing around entryways can also help with insulation. Solar panels and geothermal heating are other good solutions.

If the cost of upgrading is an issue, energy or green mortgages might be the solution. Green mortgages can offer homeowners an opportunity to purchase homes that utilize these technologies through mortgages that permit higher debt-to-income ratio requirements. Freddie Mac states that purchasing a home that is green-building certified will not only help decrease utility bills but will also increase the house’s market value.

If you are not planning on moving anytime soon, there is a type of energy (green) mortgage that is specifically for energy improvements to existing homes. Homeowners are able to finance through this mortgage to help increase their home’s energy efficiency.

Green mortgages have many advantages such as greater purchasing power, affordable energy-efficient upgrades and an increase in home values. If you are looking to purchase a home or update your current home to make it more energy efficient a green mortgage is right for you.

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