Boston White Winter with a Green Mortgage

Regardless of how you look at it, this has been a cold, snowy winter throughout North America. There are, however, options you can look at in order to spring for home improvements without crippling yourself with debt. The focus of green mortgages is increased energy efficiency, and when you’re looking at a Boston Winter where your furnace has been going virtually constantly, it’s important to consider energy efficient ways of renovating your home.

Green Mortgages Update Your Existing Home Loan

These energy efficient mortgages allow you to borrow money on your existing mortgage in order to fund energy efficient upgrades on your home. With this program, homeowners can take advantage of the financial resources to appropriately outfit their homes in order to ensure they are saving on the energy expenses for their home. For instance, 60 to 70 percent of a home’s expenditures are simply on the heating and cooling bills. Outdated duct work can contribute to 20 percent of the air lost in the home – and this air loss can result in a cooler home in the winter than you really want, thereby causing your furnace to run on a near-constant basis to compensate.

Huntington Ave., Boston
Huntington Ave., Boston (Photo credit: Wikipedia)

Green Mortgages Are Distinct But Not Separate

Green mortgages are not considered a separate mortgage as of right now; it is arranged for separately, but rolled into your primary mortgage payment, so you only have one payment to worry about. They also offer homeowners the unique opportunity to make a long lasting change in how they live by outfitting their homes to work more efficiently. It’s a truly concrete method of saving money in the long run.

Upgrading the Mortgage to Upgrade the Home

If you own an older home and apply for a green mortgage, you can rest easily, knowing that the home is going to ultimately be more energy efficient and save you money in the long run if you use the money from the green mortgage to install some energy efficient upgrades to the home. In addition, energy-based upgrades for the home can go a long way towards contributing to the overall value of your home. An energy efficient home is more marketable than one that isn’t. This means that you are truly making an investment towards a home that will be worth more in the long run.

Green mortgages come in three basic types: 

  • Conventional: This is the sort of green mortgage you can get when your lender has sold your loan to Fannie Mae or Freddie Mac.
  • FHA: While this sort of green mortgage is not as powerful as the conventional one, you are able to take advantage of the FHA rates, which are generally lower than traditional programs.
  • VA: This is done for veterans past and present.

Qualifying for an Energy Efficiency Home Loan

If you’ve already qualified for a regular mortgage, then odds are good that you will also qualify for a green mortgage, which means you can start considering what sorts of energy efficient upgrades you want to install in your home. Whether it’s dual pane windows, new insulation, or anything that can potentially lead to energy cost savings, a green mortgage can help you out. You need to contact your local lender today to determine if you qualify for this unique opportunity.

Contact me, Phil Ganz, in the Greater Boston area for help with your mortgage options.

Phil Ganz (117 Posts)

Philip D. Ganz is a Boston Mortgage Broker and Boston Home Loan specialist. For information, expertise, consulting, or advice about home loans, refinancing mortgages, or commercial property loans, contact Phil with no obligation: 617-529-9317

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