Your opportunity for a more energy efficient home
When the temperatures begin to climb, many homeowners cringe at the thought of turning on their air conditioning units due to increased energy costs, particularly if their homes are less than energy efficient. Thankfully there is a solution that can help to save them money.

Homeowners now have the option of utilizing an Energy Efficient Mortgage (EEM) whether they're buying, selling, refinancing or remodeling their homes. Recognized by the federal government, an EEM can be applied to most mortgages, providing the borrower with special benefits when purchasing or remodeling a home that is energy efficient or can be made efficient through the installation of energy-saving improvements.

Utilizing an EEM allows homeowners to finance energy improvements in their homes that will lower their utility bills, keeping more money in their pockets each month. Due to these projected energy savings, homeowners can afford to allocate a larger portion of their income to housing expenses.

In order to qualify for an EEM, a Home Energy Rating will need to be conducted by a trained energy rater. Characteristics such as insulation levels, appliance efficiencies, window efficiencies, wall-to-window ratios, the heating and cooling efficiency, the solar orientation of the home and the water heating system are used to rate the home and calculate energy costs. Performance testing, such as a blower door test for air leakage, is usually part of the rating. The data is entered into a Residential Energy Services Network (RESNET) accredited program then translated into a rating score between 1 and 100 depending on its relative efficiency. This rating is a recognized tool in the mortgage industry for determining Energy Efficient Mortgages.

Home Energy Ratings can be applied to both new and older homes. For new constructions, the Home Energy Rating can provide buyers with more purchasing power if the home is found to be energy efficient. For current homeowners or those purchasing older homes, the Home Energy Rating can help people either refinance or finance their homes with additional money allocated towards home energy improvements within the loan. The Home Energy rating projects how much the homeowner will save on their energy costs and uses this amount to allow for a higher mortgage loan amount.

For more information on Home Energy Ratings and Energy Efficient Mortgages, contact Jason Bing at Recycle Ann Arbor's Environmental House at (734) 662-6288 or jason@recycleannarbor.org. You can also find out more information about the Environmental House, green building, energy efficiency and renewable energy online at www.environmentalhouse.org.