Energy Efficiency Mortgages

An Energy Efficient Mortgage (EEM) or an Energy Improvement Mortgage (EIM) can enable home buyers to purchase a better, healthier, more comfortable home that saves money by shrinking monthly utility expenses. These loans credit a home's energy efficiency in the mortgage itself and give borrowers the opportunity to finance cost-effective, energy-saving measures as part of a single mortgage, allowing them to qualify for a larger loan amount and a better, more energy-efficient home.

The benefits of EEMs and EIMs include:

  • Lower your monthly expenses by financing green technologies like solar and geothermal
  • Earn the ENERGY STAR label for efficiency
  • Improve the resale value of your home
  • Maximize indoor air quality and occupant health
  • Reduce your greenhouse emissions and protect the environment
  • Apply to both new and existing homes, new purchases and refinances 

Example of EEM Savings

Below is an example of the savings after $8,000 in energy improvements to a home. In the example, a HERS rating recommended the following improvements:

  • Two-stage ultra efficient furnace
  • Closed-cell insulation blown into the finished basement's walls
  • 12-inches of added attic insulation
  • Programmable thermostat
EEM Savings Example
Monthly Costs (per month)Without Energy ImprovementsAfter Energy Improvements
Mortgage Payment $1,048.84 $1,104.76
Utilities Bills $300 $225
Total Cost $1,348.84 $1,329.76
Cash Flow $0 $19.08
Improved Home Value   $18,000

If you're in the market for a new or existing home, consider some of the savings and value you could put back into your home with an EEM or EIM. 
For more information about EEMs and EIMs, visit the ENERGY STAR website.