A. Energy Efficient Mortgages (EEM) and Energy Efficiency
Financing (EEF) affords home buyers and homeowners who opt to
invest in home energy improvements, favorable financing terms
that would not typically be available to them. EEF recognizes
the cost savings of energy-efficient homes and enables home buyers
to increase their buying power by providing them the longer term,
lower-interest rates and tax benefits of mortgage financing. The
small increase in mortgage payment is typically more than offset
by energy savings. EEF can also finance future energy saving improvements
to homes as part of the mortgage at the time of purchase or refinancing.
An energy-efficiency loan permits more leniency in qualifying
borrowers for mortgages on homes that perform at a higher level
of energy efficiency.
By investing in home energy efficiency in both new and older homes,
Americans will be able to increase their comfort, safety and value.
They can improve their quality of life and help raise the level
of energy performance of the nation's housing stock. At the same
time, energy-efficient financing can help to extend home ownership
opportunities to a significant number of people who were previously
priced out of the market.
is a method of measuring and rating the relative energy efficiency
of any house., regardless of its size, age, location, construction
type, or fuel used. The Home Energy Rating System (HERS) evaluates
the performance of the thermal envelope, window type and locations,
siting, HVAC system, hot water system, and other factors and is
obtained by on-site inspection. HERS calculations include estimates
of annual energy performance and costs, and can provide insight
into cost-effective, energy-efficiency improvements.
HERS provides objective, standardized information on the energy
performance of homes. Expanded use of HERS could stimulate use
of energy-efficiency technologies by making energy efficiency
a more quantifiable, visible and recognized attribute as homes
are designed, built, bought or sold, and improved. Home buyers
who have a home rated prior to purchase may have more leverage
in negotiating favorable financing terms with lenders based on
the home's past energy performance, current estimated energy performance,
or on the anticipated future energy savings following improvements.
with thanks to the Home Energy Rating Systems Council.
Cynthia Gardstein/President.