Investopedia

Continue to Site »

Energy Improvement Mortgage

Filed Under » ,
Dictionary Says

Definition of 'Energy Improvement Mortgage'

A mortgage that sets money aside for home improvements that will increase energy efficiency within the home. Energy improvement mortgages are available when a house is being purchased or refinanced. A certified home energy rater will examine the home and suggest improvements; once the improvements have been made and confirmed, the lender will repay the expenses (which have already been approved under the mortgage contract) to the borrower from an escrow account.
Investopedia Says

Investopedia explains 'Energy Improvement Mortgage'

Borrowers will carry a higher mortgage payment with an energy improvement mortgage, but the additional cost may be balanced out or even erased by lower ongoing energy costs, as the home will be more efficient once the improvements have been made. Typical improvements that are considered include extra insulation, tightening of window and door seals and replacement of the HVAC system.

It is in the best interests of mortgage lenders to make homes more energy efficient, as this lowers homeowners' monthly costs, improving their chances of being able to service the mortgage. Energy efficient homes also retain more of their value at resale and are attractive to a wide group of potential buyers.

As energy efficiency ratings for homes become more commonplace in the industry, more lenders will be attuned to offering energy improvement mortgages, appealing to both the bottom line and the social/environmental concerns of their customers.

Articles Of Interest

  1.

    10 Ways To Save Energy And Money

    The average family spends $1,600/year on utility bills - find out how to put some of that back in your wallet.

  2. Clean Or Green Technology Investing

    Innovations in energy and consumption grow as companies adopt them to reduce costs.

  3. Mortgages: How Much Can You Afford?

    Answering this means number-crunching as well as factoring in other considerations and expenses.

  4. Green Mortgages Save Money And The Environment

    This emerging type of loan is not just for treehuggers. It rewards you for eco-friendly housing, in the form of cold, hard, cash.

  5. Home-Equity Loans: The Costs

    Learn the factors to consider when comparing the different programs offered by various lenders.

  6. Building Green For Your House And Wallet

    The earth-smart money is on these environmentally friendly housing projects.

  7. 6 Ways To Save On Your Utility Bill

    Find out how to reduce your costs with these inexpensive tips.

  8. 6 Tips For Selling Your Home Fast

    Find out what you can do to stand out from the competition and make your home an easy sell.

  9. 5 Smart Ways To Use Your Tax Return

    This year, find out how to stretch your tax refund further to strengthen your future.

  10. Common Liabilities That Hurt Your Net Worth

    Every penny that you keep out of the liability side of the net worth equation essentially ends up on the asset side.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  2. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  3. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  4. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  5. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  6. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.
Trading Center