08
Jul
By Mike Pfefferman
Mortgage

How to Finance Energy-Efficient Home Improvements with a Mortgage

As more homeowners look for ways to reduce utility bills and make their homes environmentally friendly, energy-efficient improvements have become a smart investment. The good news is that you do not need to pay out of pocket for all the upgrades at once. There are mortgage financing options that allow you to make energy-efficient improvements while also making your home more comfortable and affordable in the long run.

One of the most common ways to finance these improvements is through an Energy Efficient Mortgage, or EEM. This type of loan is designed to help borrowers finance energy-saving upgrades as part of their home purchase or refinance. With an EEM, the cost of improvements is rolled into the total mortgage amount. This means you are not required to take out a separate loan or use a credit card to cover the cost. EEMs are available through both conventional and government-backed loan programs including FHA and VA loans.

If you are purchasing a home that needs new insulation, solar panels, or high-efficiency HVAC systems, you can include those upgrades in your initial mortgage. The lender will often require a home energy assessment to determine the projected energy savings. If the savings are greater than the cost of the improvements, it can strengthen your approval odds.

Another option is a renovation loan such as the FHA 203k or Fannie Mae’s HomeStyle Renovation loan. These programs allow borrowers to finance both the home purchase and the cost of energy-efficient upgrades into a single mortgage. This is particularly helpful for buyers interested in fixer-uppers or older homes in need of major energy-saving renovations.

For homeowners who already have a mortgage but want to upgrade, a cash-out refinance may be the right solution. With a cash-out refinance, you can access a portion of your home’s equity and use the funds to make energy-efficient improvements. While this option does increase your loan balance, the potential savings on monthly utility bills and increased home value often make it a worthwhile investment.

Many states offer local programs and incentives for energy-efficient upgrades, including rebates and tax credits. It is worth checking what is available in your area, as combining those incentives with mortgage financing can significantly reduce your out-of-pocket costs.

Energy-efficient improvements not only lower your energy bills, they also make your home more marketable in the future. Buyers are increasingly interested in homes with sustainable features, meaning the investment you make today can pay off later when it is time to sell.

Before choosing a financing option, talk with a mortgage professional who understands the different programs available and can guide you through the process. Whether you are buying, refinancing, or renovating, there are ways to finance energy-efficient upgrades that make sense for your long-term goals.

05
Apr
By First Rate Financial Group
Around The Home

Green-ify Your Home with These 3 Easy Home Renovations

Green-ify Your Home with These 3 Easy Home RenovationsThe concept of going green is often seen as an expensive process, and this can stop many people from taking the small steps needed to make their home more environmentally friendly. If you want to green-ify without any of the high costs, here are some simple things you can do that will easily improve the energy efficiency of your home.

Complete An Energy Audit

It can cost in the upwards of $400 to get a certified evaluator to take a look at your property and determine how energy is being wasted, but you can complete this type of evaluation on your own without all of the expenditure. Try the candle test and take a flame on a tour of your home, being aware of areas where the flame wavers and drafts may be coming in from outside. Once you’ve determined the problem areas, you can tackle the project of re-caulking which will seal up any openings that are leading to energy loss and more expensive heating costs.

Fix-Up Noticeable Insulation Issues

Completely overhauling your insulation is not among the easiest of fixes, but there are some simple ways you can improve its effectiveness without a lot of hard work. Instead of a comprehensive analysis, head up to the attic to take a peek at the insulation there. Using a mask and a pair of gloves, check the insulation and look for any spaces where air could be gaining access to your home. If you come across any vulnerable areas, add some extra insulation and seal the area with expanding insulation for a little added coverage.

Install A New Faucet

While heat conservation is one of the most important factors in energy efficiency, taking care of the water supply will also have a significant impact on your home’s environmental footprint. Instead of sticking with old-style faucets, head down to the hardware store for low-flow taps that will automatically cut down on water use without you or your family having to think twice. This type of fix is an easy enough installation and your water savings will be facilitated every time you turn on the tap.

There are a number of small changes you can make around your home to easily conserve energy and cut down on water waste. If you’re doing some small renovations because you’re preparing for a large move, you may want to contact one of our local real estate professionals for more information.

05
May
By support
Around The Home

2016 Kitchen Decor Trends to Inspire Your Renovations

2016 Kitchen Decor Trends to Inspire Your RenovationsA kitchen upgrade may seem like the sort of renovation that will cost a pretty penny, but there are a lot of funky things you can do that will add an easy accent and make for a current look. If you’re planning some home improvements in 2016, here are some upcoming trends you may want to try out.

Cue The Contrasting Cabinets

It can be a major undertaking to change the style of your kitchen cabinets, and that’s probably why many people are considering a little switch instead of a major upheaval. By keeping your top cabinets the same and adding a funky new color or material to the bottom half, you can create a striking appearance. Keep in mind that if you don’t want to change out your cabinets entirely, you can go for a bold paint color instead.

Bring Color Into Stainless Steel

From teakettles to mixers, brightly colored kitchen appliances have certainly seen a retro rebirth in recent years, but the stainless steel trend is also experiencing a bit of an upgrade. While the material remains popular, many people are becoming interested in different stainless steel color options like black and sunset bronze which offer a unique look for an old mainstay.

A Multi-Use Island

Space in the kitchen can become an issue when it comes to dinner parties, and that’s why the diverse utility of a kitchen island is maintaining its popularity. Instead of the prominent counter for holding fruit bowls and extra papers, think of a funky, fashionable drink cart or side table that can be used for prepping extra food and will have many other purposes once the party is over.

The Non-Committal Kitchen Shelf

While kitchens have become more of a gathering space for family and friends in recent years, this has led to the popularity of a less-formal kind of kitchen. Instead of a lot of counter space and pots and pans in their place, create a bookshelf or cabinet that mixes the living room and kitchen together, full of dishware, books, utensils and other popular household items. It’s a piece that will easily transform your space.

There are a lot of unique fixes on the horizon for 2016 that will instantly modernize your kitchen and easily improve its look. If you’re currently renovating and are looking to put your home on the market, contact your trusted mortgage profssional for more information.