An Energy Efficient Mortgage (EEM) is a financing option for an energy efficient home, or a refinancing tool for home improvements that increase energy efficiency. Based on the assumption that money saved on utilities can be used to make a larger house payment, homeowners of efficient homes can qualify for a larger loan with an Energy Efficient Mortgage. That can help buyers afford the higher cost of an high performance home, yet often with a lower monthly expense -- a great win-win.
A Home Energy Rating (HERS) report or energy audit by a trained professional is required to identify the current efficiency of a home, suggest changes to increase energy efficiency and estimate the costs of the changes, as well as estimate savings. Many new and weatherized homes qualify for an Energy Efficient Mortgage. The U.S. Department of Energy has more information about an Energy Efficient Mortgage and how to find lenders who offer them.
