22 November, 2006

Energy-Efficient Homes Cost Less to Own Than Non-efficient Homes

According to Pacific Gas and Electric, in a document produced cooperatively with the U.S. Department of Energy, when buying, selling, refinancing or remodeling a home, home owners can increase comfort and save money by using the Energy Efficiency Mortgage (EEM), which is approved in all 50 U.S. states. EEMs provide the borrower with special benefits when purchasing a home that is energy efficient

or which can be made more efficient though the installation of energy-saving improvements. Home buyers qualify for a larger loan on a better home, save money from Day One, and increase the potential resale value of their home. Sellers sell their homes more quickly, make them more affordable to more people and attract attention in a competitive market. Home owners who remodel and refinance make an older, less efficient home more comfortable and affordable and increase the potential resale value of their home.

An EEM can only be done if an official home energy rating, or HERS Report, indicates that it will save money. The HERS Report includes the overall rating score of the home as it is, recommended cost-effective energy upgrades, estimates of the cost, annual savings and useful life of the upgrades, improved rating score after the installation of

upgrades and estimated annual total energy cost before and after upgrades.

A HERS rating usually costs between $100 and $300 and could be paid for by the buyer, seller, lender or real estate agent, or financed as part of the mortgage.

More information on these mortgages and HERS raters will be published in succeeding AdVantage articles.

Jack MacMillan

For Sylvania AdVantage

5733 Sun Valley Blvd.

Sylvania, OH 43560

Phone: 419.885.1734

Fax: 419.891.0696

macmillan@sev.org