Benefits to Homeowners

Homeowners enjoy four major benefits from energy-efficient construction: lower utility bills, increased comfort, higher resale value and qualification for energy-efficient mortgages.

Let's look briefly at each:

• Lower utility bills are the result of higher construction standards as compared to conventional construction.

• Increased comfort is because energy-efficient construction techniques virtually eliminate drafts and temperature gradients that make homeowners feel warmer or colder than they really are.

• Higher resale value results from better constructed, more energy-efficient homes being worth more in the marketplace. A recent survey found that 85% of the respondents believe energy saving features add to a home's resale value.

• Finally, the possibility of qualifying for an energy efficient mortgage is a real advantage. Home buyers purchasing an energy-efficient home with energy consumption that can be documented may quality for a larger mortgage than they would receive on a conventional home. According to the National Association of Realtors, lenders are now looking closely at the projected utility costs for a home in determining whether a prospective mortgagor can afford both the monthly mortgage payment and the utility payment. In addition, the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae) have changed their appraisal forms to include energy efficiency. Finally, Freddie Mac has changed its purchasing guidelines to permit higher loan-to-income ratios for energy efficient properties.