HomeReport
Real Estate & Finance News That Affects Your Home                                                         Page  1 2 3 4

May 2009 - Page 4

GREEN MORTGAGES Your Mortgage Can Go Green Too! Green mortgages, also known as Energy-Efficient Mortgages (EEMs) or Energy Improvement Mortgages (EIMs), provide home owners and buyers with a larger loan than would normally be permitted as a reward for making certain energy-efficient improvements or for buying a home that meets particular energy-efficiency standards. The idea of green mortgages is based on the notion that the more energy efficient a home is, the lower its utility bills, which translates into savings for the homeowner. This additional income allows the home buyer to qualify for a larger loan. The home also has the potential to be more valuable over time due to its energy efficiency. To apply for a green mortgage, you'll need to provide your lender with an energy audit, or Home Energy Rating System (HERS) report. The HERS report, a standardized evaluation of a home's energy efficiency and expected energy costs, usually costs a few hundred dollars; however, the cost of the audit can be rolled into the loan. MEASURING UP How To Calculate Square Footage If you've ever taken a tape measure to your home or one you were considering buying, you may have found some variance between your measurements and the ones noted on an appraisal or listing. Here's how homes are supposed to be measured according to American National Standards Institute (ANSI) standards. Finished square footage is the finished area at floor level measured to the exterior surface of outside walls. Above grade finished square footage counts finished space entirely above grade, whereas below grade includesareas wholly or partly below grade. To include a finished area in finished square footage, it must have a clearance of at least 5 feet (e.g., under sloping ceilings, stairwells) and at least half the area in the room must have ceilings of at least 7 feet or higher. Finished areas that protrude beyond the finished surface of the exterior walls (e.g., chimneys, bay windows) and do not have a floor on the same level cannot be included in the calculation of square footage. Despite the above, ANSI says, "Calculations for square footage may vary due to current area tradition of specific guidelines (ERC Guidelines)." So, it is important to find out which guidelines the stated size was based on.   Page: 1 2 3 4 Back to Scottsdale Real Estate Web Site