Mortgage Methods: Turn Home Equity Into Energy Savings

By Richard Barrington Columnist

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As you pay your mortgage, your home equity starts to build. It is well known that one way to reinvest this home equity is to take out a home improvement loan for projects that will add to the value of your home. But what if you don't plan on selling in the foreseeable future? In that case, consider a home improvement loan for upgrades that could start to pay you back sooner rather than later.

Using a home equity mortgage to make your home more energy efficient is a one way to use home equity. It will not only lower your monthly energy bill, but also allow you to do your part in combating global warming.

Think Globally, Act Locally

The effects of global warming have been well publicized, and most people share some level of concern about these effects. What many people may wrestle with is what to do about it.

The old activist advice of "think globally, act locally" applies to helping fight global warming. Even if global warming seems like too broad an issue for you to tackle personally, the high cost of energy is a specific problem that hits home directly. A home equity mortgage could be an investment for both you and the planet.

How to Make a Home Improvement Loan Pay You Back

How can you use a home improvement loan to improve energy efficiency? Here are a few common examples:
  • » Upgraded windows
  • » Insulation
  • » Weather stripping and caulking
  • » Energy-efficient appliances
By creating an energy-efficient home and lowering energy bills, you can add value to your house without relying on the ebb and flow of the housing market. There is immediate pay back that begins from the first month's energy bill and continues from there.

San Diego Gas & Electric

About the Author
Richard Barrington is a freelance writer and novelist who previously spent over twenty years as an investment industry executive.

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