WASHINGTON – Jan. 10, 2013 – Energy-efficient mortgages (EEMs) have been around since 1980 and can be issued by any FDIC-insured bank, yet they account for less than 1 percent of all residential loans.

Although tax-deductible mortgage interest should make financing energy-saving improvements easier for homeowners, many borrowers avoid EEMs due to the significant amount of time and paperwork they require.

Instead, most homeowners prefer the energy-efficiency rebates and tax incentives through the American Recovery and Reinvestment Act of 2009, which require less paperwork and no Home Energy Rating System inspection. Moreover, many lenders, Realtors and appraisers still place a higher value on visual components.

Homebuyers may also be more interested in green products such as bamboo flooring and recycled glass countertops, than those that boost energy efficiency.

However, there are energy-efficiency initiatives sponsored by utilities, state agencies and local organizations that can reduce project costs by 10 percent to 30 percent. Meanwhile, homebuyers may take a closer look at efficiency in the wake of Hurricane Sandy, given that a more energy-efficient home will consume less power from a generator in the event of an outage.

Source: RealtyBizNews (01/03/2013) Snyder, Tim

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