Green Links & Articles

Larry's 8 Energy Saving Tips

With a little effort and these helpful tips, you can save energy and money!

To save on water heating costs, wrap your water heater in a hot water insulation kit, which is available at most hardware stores.

Use a programmable thermostat to adjust the temperature of your home while you are away or sleeping

Sealing and insulating your home will improve comfort and reduce heating and cooling costs. To improve the "envelope of your home", add insulation, seal air leaks and choose energy-efficient windows.

Refrigerators account for up to 20% of a home's electricity costs. To keep your power bills low, use only as much energy as necessary. The refrigerator should be set between 38ºF and 42ºF. The freezer should be set between 0ºF and 5ºF.

Upgrade your refrigerator if it is 10 years old or older. Newer, efficient models can reduce energy consumption by up to half that of a 10-year-old conventional model.

Wash clothes in cold water and always have a full load. There are several cold temperature detergents on the market. Keep in mind 15 minutes of presoaking and 5 minutes of agitation get clothes cleaner than 15 minutes of agitation.

Take advantage of incentives and rebates. Check with your local utility to see what rewards are available for the purchase of energy-efficient appliances, lighting or heating, ventilation and air conditioning systems.

Turn off the circuit breaker for the air conditioning compressor in the off-season. The heating coil running in the winter not only invites unwanted stowaways, it costs up to $14 per month in electrical cost.

Contact Larry Weiss at 414-305-0126 or email him for a free consultation with a special emphasis on buying, selling or making your home more "green".

Energy Efficient Mortgage

HUD has implemented an FHA Energy Efficient Mortgage (EEM) Program.

The program is for new or existing, 1 and 2 unit properties only. This program can be used on a fixed or an adjustable rate mortgage (ARM). Energy efficiency can include both energy saving, and active and passive solar technologies. 

A mortgage for the purchase or refinance (including streamline refinance) of a property to be insured under 203(b), 234(c), or 203(k) is eligible for the EEM program. However, for the streamline refinance transactions, the borrower's monthly payment for principal and interest on the refinance mortgage (which will include the cost of the energy efficient improvements), must be lower than the monthly payment and interest on the current mortgage. 

The cost of the energy-efficient improvements that may be eligible for financing into the mortgage is the greater of 5% of the property's value (not to exceed $8,000) or $4,000. 

A borrower can finance up to 100% of the cost of eligible improvements, subject to certain dollar limitations. The improvements must be cost effective, which means that the total cost of the improvements (including maintenance costs) must be less than the total present value of the energy saved over the useful life of the improvements. 

To calculate the present value of the energy savings on the adjustable rate mortgage, the interest rate used must be 3% above the note rate. 

The home energy rating report prepared by the HERS entity or energy consultant must be a written report provided to the prospective borrower and lender and it must contain the following information:

    * Address of the property
    * Name of the current owner(s) of the property
    * Date of the property inspection
    * Description of the energy features currently in the property. This must include, at minimum: a description of the insulation R values in the ceilings, walls and floors; infiltration levels and barriers (caulking, weather-stripping and sealing); a description of the windows (storm windows, double pane, triple pane, etc) and doors; and a description of the heating (including water heating) and cooling systems
    * Description of the improvements recommended to improve the energy efficiency of the property
    * Estimated costs of any maintenance over the useful life
    * Present estimated annual utility costs before installation of the energy efficient improvements
    * Estimated annual savings in utility costs after installation of the energy efficient improvements
    * Printed name(s) and signature(s) of the person(s) that inspected the property and prepared the report and the date of preparation of the report. The following certification, signed by the person(s) who inspected the property and prepared the report, must accompany the report:
    * "I certify, to the best of my knowledge and belief, the information contained in this report is true and accurate and I understand that the information in this report may be used in connection with an application for an energy efficient mortgage to be insured by the Federal Housing Administration of the United States Department of Housing and Urban Development."