Mortgage Risk Shrinks with Energy-Efficient Buildings

May 9, 2013

So it’s not just me. Jen Alic, a blogger for The Christian Science Monitor, says, “Here’s some new impetus for those sitting on the fence over household energy efficiency: The risk of mortgage default is one-third lower for people with energy-efficient homes, according to a recent study.”

The research by the University of North Carolina’s Center for Community Capital provides the first real academic link between mortgages and energy efficiency, but it proves my favorite point: SIPs and other smart energy-saving features just make your financial situation better.

In the study, houses with lower HERS scores showed a lower mortgage-default risk. After all, when you save hundreds of dollars on energy costs each month, it becomes much easier to make your mortgage payments—and still have money for other priorities.

Homes built with Thermocore Structural Insulated Panels consistently score lower on the HERS index. A normal HERS rating is 100; the Energy Star standard is 70. Bart Rynish of Barton Designs achieved a HERS rating of 35 with Thermocore SIPs. After Art of Rocky Ridge Designs received a HERS rating of 67, he found that his SIPs home actually consumed less than half the predicted amount of energy in its first year.

Despite what some may say, building with Structural Insulated Panels does not cost more than traditional building methods. There are so many reasons to build green. Now we have proof that using SIPs and other energy-efficient features also protects your mortgage.