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Part of Biden’s dream for America is a large expansion of green and renewable energy infrastructure. One way America can become more energy efficient and independent is by investing in technologies that save electricity. This could be as simple as adding more insulation to houses, installing energy efficient windows, or upgrading appliances.
To encourage homeowners to renovate their homes with energy efficient solutions, an energy efficient mortgage is being offered to the public. This type of mortgage can be used for new purchases or refinancing. The cost of the renovations is rolled into the total cost of the mortgage.
In order to qualify for renovation funding over $3500, you must have an energy needs assessment performed. The cost of the assessment can be included in the mortgage. A professional will visit your home, record the current energy efficiency of your property, and make recommendations for improvement.
You will probably qualify for other rebates and credits when you use an EEM to upgrade your property. Talk to your accountant about tax credits, and speak with your state Department of Energy to find out more about local incentives. There are multiple ways to profit from an energy upgrade.
An EEM can even help first-time home buyers afford a bigger home. The reduced utility bills are figured into the loan underwriting, which gives room for a slightly large monthly mortgage payment.
EEM mortgages are available from conventional lenders, the VA, and the FHA. Fannie and Freddie Mac have different guidelines for their EEM offerings, so it is important to read the fine print. State energy departments can help buyers locate lenders offering EEM mortgages.
If you are looking to lock in a lower interest rate and save on your utility bills at the same time, this is the right time for an EEM refinance!