Pay for Weatherization Costs with Your Home’s Equity

Living in the Northeast when the seasons are changing can prove costly if your home is not energy efficient. You can easily spend hundreds of dollars on a heat pump, furnace repair or replacement, a pellet stove, air sealing, insulation, ventilation, or roof repair or replacement just to name a few. The list of potential fall weatherization and energy efficiency projects is often big, and finding funds necessary to pay for such efforts may be just enough to make some people think it’s simply not affordable for them.

So what’s the good news? When you have equity in your home, a discounted home equity loan can allow you to leverage your equity for discounted rates and terms. Even the smallest energy upgrades can lower your monthly utility bills, so why not use the equity you already have in your home to get discounted loan rates on energy-specific upgrades and let the utility savings pay the loan payment, as is often the case?

You may be able to use your home’s equity at little to no upfront cost. Favorable terms are available, which allow you to borrow against the town assessment value. This means no costly and time-consuming appraisal. Also, there are often lender credits for energy efficiency projects, which can offset the cost of taking on a home equity loan.