Rising energy costs affect every homeowner. If you are planning a home improvement project, it's important to look at ways to incorporate energy efficient changes as well as merely cosmetic ones. The money you invest today can quickly pay for itself with savings on monthly utility costs, and on your mortgage as well.



You need to spend money to make money, and energy wise home improvements do require a certain amount of cash outlay. Even if you don't have a large budget on hand, there are options available to you.

If you are planning to renew or refinance your mortgage, speak with your lender about borrowing a little extra to invest in making your home more energy efficient. These are smart improvements that can immediately lower your monthly energy bills. The interest on your home equity loan and mortgage may also be tax deductible.

Energy Wise Mortgages

Another good option is to consider an Energy Efficient Mortgage. When you own a car, you have real costs like maintenance and operating expenses, and the same holds true for a home. Utility costs are always increasing, and these must be factored into the costs of owning a home. An E. E. M., or Energy Efficient Mortgage, can increase your comfort and save you money whether you are buying, selling, refinancing or remodeling your home.

This type of plan is available with most home mortgages and can provide special benefits to borrowers who are either buying energy efficient homes or installing energy efficient improvements. When you utility bills are lower, you'll have more money in your pocket at the end of each month. Then, you are free to allocate a larger portion of your income to housing expenses.

Financing your energy wise home improvements through an E. E. M. presents many benefits:

* Qualifying for a larger loan amount allows you to purchase a better, more energy efficient home.

* You may finance your cost-effective energy saving measures as part of your mortgage.

* Older homes can be improved and updated to become more comfortable and efficient

* You can stretch your debt-to-income qualifying ratio with a loan for energy-efficient homes.

* This type of plan can increase your overall buying power.

Energy Wise Financing Options

Many utility providers and energy-related businesses will offer loans and incentives. Property owners can use these to install new heating and air conditioning systems, insulation, windows and other energy efficiency improvements. Utility companies are also offering a range of improvements to help customers enjoy greater efficiency. In the United States, the Edison Electric Institute (E. E. I.) provides a list of member company programs that offer efficiency services to homeowners, businesses and industrial plants.

Many more energy efficient services and ideas are available online. Try searching for information on the National Energy Affordability and Accessibility Project (N. E. A. P. P) site.

If you're thinking of renovating, make energy efficient home improvements your first priority. Your monthly savings will quickly make up for the initial building costs, and you'll be helping to preserve our priceless energy resources.