How A Green Mortgage Can Help You Save Money

by Pam on February 15, 2011

I received a great tip from a reader recently about green mortgages.  If this concept is new to you (as it was to me) you are probably wondering what a green mortgage actually is.

To put it simply, a green mortgage is when you borrow money to make upgrades on your home in order to make it more energy efficient and environmentally friendly.  You get to borrow the money as part of your mortgage so you can make one single payment instead of two.  And, as mortgages usually have lower interest rates than other types of loans, you will be able to borrow at a fairly low interest rate.

Examples of upgrades that may be eligible include installing new energy-efficient windows, insulation, replacing old appliances, and much more   The link provided to me seems to be geared towards residents of the United States, however, it wouldn’t hurt to talk to your mortgage lender to see if there is an option to have a green mortgage in your own country.

If not, it still may not be a bad idea to invest some of your money into making your home more energy efficient.  After all, if you plan to live in your home for a long time you will see significant savings in the long run.  If your plan is to move out in the near future, then making expensive changes will not likely be worth it as most upgrades will not significantly increase the value of your home relative to how much you have to pay for them.

For more details on how green mortgages work in the U.S., check out the Guide to Green Mortgages article.

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