Energy-saving construction features
like better insulation, improved windows,
and more efficient heating systems
can add 5% to 10% to the cost of a
home. Although most of these products
pay for themselves over time, anything
that raises construction costs is a hard
sell to clients who are pressed for cash
to begin with. If that's the case, you
may want to tell your customers about
energy-efficient mortgages, or EEMs.
Though EEMs have been accepted for
many years by the secondary mortgage
market (Freddie Mac and Fannie Mae,
for example), they're just now gaining
acceptance among realtors, lenders, and
government agencies.
Here's how EEMs work. Traditional
mortgage financing doesn't look at
energy costs, even though energy consumes
about 10% of a