GOING GREEN? ASK QUESTIONS FIRST!
If you're looking to finance energy efficient improvements for your home, we encourage you to do your homework and talk with your financial or trusted advisor about the most appropriate option for you.
This conversation is important since some of these financing options can expose you to significant risks — including making it hard to refinance or sell your home — and can come with unfavorable interest rates, fees and repayment terms.
When reviewing your financing options, be sure to ask yourself and your financial advisor the following questions to avoid future issues:
Will the loan be repaid through your property taxes?
If "yes," the loan may be in priority lien position, meaning that it takes precedence over your mortgage.
You'll want to talk with your state tax advisor before taking on such a loan, as you could be violating the terms of your mortgage and the loan can result in repayment terms that will seriously impact the value and marketability of your home.
Can I afford this loan and is the repayment plan realistic?
As with any loan, you should shop around for a financing option that offers reasonable fees, affordable interest rates and practical repayment terms.
Are you being protected?
It's important that the company offering the loan has comprehensive checks and balances in place to ensure that you aren't getting a loan you can't afford.
There are several energy efficient financing options that can meet your needs while protecting your mortgage terms and the marketability of your home.
Be sure to talk with your advisor about affordable and suitable financing solutions, including those offered by Freddie Mac.
Source: Freddie Mac
I look forward to assisting with your Real Estate needs!
John Castelli, Realtor
(773) 851-7636
Whether you have central air or a window unit, a dirty filter will reduce your AC’s efficiency making it use more energy. Check your HVAC system’s air filter monthly, and expect to change the filter every 3 months, and be sure to have a professional look at your AC unit once a year to diagnose any problems. Also look for energy star products if you’re in the market for a new air conditioner. Using one could cut energy usage by 14 percent. It may seem counter intuitive, but on a hot summer day opening your windows will often make your home warmer, not cooler. When night falls, if the air outside is cooler than inside, open the windows on opposite sides of your home so you can take advantage of cross ventilation. This will allow cool night air to circulate. Did you know that 90 percent of electricity used by an incandescent bulb is converted to heat rather than light? The extra heat means extra cooling expenses, so replace your light bulbs with compact florescence lights. Unlike incandescent’s, they give off very little heat.
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