When trying to prioritize eco-friendly products in our lives, one of the biggest hurdles we face is financial. Eco-friendly products and services can come at a premium, and there may be high start-up costs for projects that make our world more energy-efficient. While the world is still transitioning to technology that helps conserve resources, the price tag of an eco-friendly product may be a turn-off when there are other alternatives available.
So what if you’re thinking of undertaking a major project for your home and are committed to minimizing your impact on the environment, but find that you don’t have the necessary funds on hand? It may be worth considering a loan, especially since borrowing money can be a particularly good option when it comes to eco-friendly goods and services because green technologies often cost less than the alternatives in the long run. When you look into updating old plumbing, electrical infrastructure, and appliances, you could be surprised how much their inefficiency may be costing you.
This article will give you an overview of your options, whether it’s through personal loans, which sites like geldlenen-spoed.nl can help you find, or a loan based directly on the value of your home that takes your mortgage into account. What’s right for you will depend on your project and your circumstances — read on to find out more.
Ways to finance an eco-friendly home improvement
Private loans
Private loans are a good option if you don’t want to use your home as collateral, and can often be secured and paid off more quickly than home equity loans. Your interest rate and payment also depend on your credit score, but there are many options if you shop around. You can find options from lenders like Krediet Groep, and also see how they compare to other lenders. Paying off private loans should be a priority since not doing so could cause your credit score and borrowing power to drop.
Cash-out refinance
Cash-out refinance plans allow you to use a part of the equity you have in your home to pay for your improvement project. However, it involves a refinancing of your mortgage, potentially changing your rate. This makes it more dependent on the rates of the housing market, and can also be a longer process than taking out a loan from a private lender, such as Krediet Vooruit. Cash-out refinance is a good option if you’re planning on staying in your home long term and don’t mind waiting for the right opportunity to change the terms of your mortgage. Also, make sure to check that the refinancing allows you to recoup the closing rates as well as cover the budget of your project.
Home-equity loans
Home equity loans are essentially a second mortgage, allowing you to withdraw a certain amount of money by using your house as collateral. The payments for both interest and principal are simply added to your monthly mortgage payment. Again, this borrowing method is dependent on what the rates are when you initiate the loan, so timing is key.
Government loans
There are also government-backed options for home renovation loans, and energy-efficient improvements often qualify for lower rates or deductions. The specifics vary by state and municipality, so check what your local housing department offers to find your options.
What are some of the best products to invest in for an energy-efficient home?
Tankless water heaters
Tankless water heaters are a little-known energy-saving tool. While a typical water heater uses natural gas to create a storage of hot water, tankless water heaters only heat water as it is needed. If your water heater is a typical storage model, you could reduce your energy consumption by up to a third by installing a tankless heater. The downside is that they are significantly more expensive; however, they also tend to last ten to fifteen years longer than storage heater models.
Solar panels
Solar panels are one of the most common ways to reduce your home’s carbon footprint. Instead of getting your electricity from an energy company, you can get it directly from the sun. The biggest thing to consider when thinking about solar panels is, of course, your roof. Not all roofs are suited to solar panels, and may not receive enough light in all seasons.
Once you’re certain they’d be a good fit for your home, consider the installation costs, factors like durability and longevity, and how to balance your energy use with solar panel efficiency. Mono-crystalline solar panels are the most efficient variety, but poly-crystalline panels are a close second and can often be much cheaper. Do a bit of research to find what fits your budget best.
Many energy companies will also offer rebates if you install solar panels, which can help reduce your energy costs even further and make the project even more affordable over time.
Cool roofs
While you’re installing solar panels, you might also want to consider investing in a cool roof. Typically, many homes have roofs that are magnets for heat; all that absorbed heat in the warm months could result in raising the temperature of your home by up to 5° F. Cool roofs work to reflect sunlight instead of trapping it, helping you save energy when cooling your house. Materials such as metal and tile for roofing are becoming increasingly popular, as they often last much longer than shingle roofs — sometimes up to 75 years — and can be made more sustainably.