FHA
Example EEM Mortgage
Example
| Sales Price: |
$60,000 |
| Interest Rate: |
8% |
| Closing Costs: |
$1,200 |
|
|
| Improvements Recommended
by Home Energy Rating: |
$3,000 |
| Average Life of Measures
Calculated by Rating: |
10 years |
| Monthly Energy Savings
Calculated by Rating: |
$40 |
Standard Underwriting
| $60,000 Sales Price |
$60,000 Appraised Value |
| + $1,200 Closing Costs |
97.75% Maximum Loan to
Value |
| $61,200 Mortgage Basis |
$58,650 Maximum Loan |
| X 97.95%
Maximum Loan to Value Ratio |
| $58,640 Loan
Amount |
Energy Mortgage Calculation
| $58,640 |
Loan Amount |
| $3,000 |
Energy
Improvements |
| 10 years |
Average Life
of Improvements |
| $40 |
Monthly
Energy Savings |
| $480 |
Annual
Savings |
| $3,220 |
Energy
Premium
(6.710 present value from chart on page 6-33 X $480 annual savings) |
New Loan Amount
| $58,640 |
Standard Loan Calculation |
| $ 3,000 |
Energy Mortgage |
| $61,640 |
New Loan Amount |
|
