Energy Efficiency and Your Home

Homeowners and buyers have a number of costs to consider over the life of a property, in addition to mortgage payments. Taxes, insurance, fees, maintenance, and utilities all contribute to the total cost of ownership. That’s why it's important to consider the efficiency of your home when it comes to energy and water usage. Targeted investments to improve or create efficiency may provide significant long term savings and pay for themselves.

Efficiency options

Energy and water efficiency improvements can take many forms. Prioritize those that are most-needed for your home or circumstances and offer the greatest savings over time. A few options to consider include:

  • Installing energy-efficient windows and doors
  • Increasing home insulation
  • Installing a solar power system, also known as a photovoltaic (PV) system
  • Replacing a hot water heater with a more energy-efficient system
  • Installing a programmable thermostat
  • Upgrading a heating, ventilation, and air conditioning (HVAC) system

These additional resources may also be helpful:

Sensible financing for improvements

Energy efficiency may seem like a luxury if your financial resources are limited. But it’s important to consider the potential monthly and long term savings plus the positive effects on your home’s resale value. You can estimate energy cost savings using online calculators available from many providers through a web search.

The financing option you choose is equally important. Using cash or short-term debt such as a credit card can work for small expenses. But for larger projects consider lower cost and less burdensome options like:

  • Energy mortgages
  • Home equity loans or lines of credit
  • Grants and assistance programs
  • Utility company financing

Benefits of energy mortgage financing

While individual circumstances should guide your energy-related financing decisions, the ability to include energy investments in your home purchase or refinance—and to spread the costs over the life of your loan—can make energy upgrades an affordable and attractive option.

Learn about Fannie Mae’s energy efficiency mortgage HomeStyle® Energy to see if it may work well for you.


Energy Mortgages


Get Started

Always compare and shop around for the energy efficiency upgrades that work best for your financial situation. To determine if you may qualify for an energy efficiency mortgage, talk to your real estate professional, lender, or financial provider.