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[E242]Energy Saving For Home

by Jennifer Stromsteen, Jen

Hopeful first time home buyers are going to benefit from a long forgotten art of building a savings to buy your first home. It will be difficult and it will take time, you may not be able to buy your dream house as soon as you want; however, in the end you will save tens of thousands of dollars and have a significantly higher level of financial flexibility.

At one time saving up to buy a home was a rite of passage for those in their twenties. As home prices soared over the last decade it has become difficult to build the amount of savings so the mortgage institute offered solutions such as zero-down mortgages as well as outlandish 40 year mortgages. This helped many people get into that first home but cost them financially in the end.

Today these options have all but disappeared under rules that have just been announced by the government. The rules are set for people who have less than 20 percent of a down payment and will need mortgage insurance. Mortgage insurance is a protection paid by the buyer for the lender in case of default.

The zero-down payment mortgage has been very popular with the first time home buyer since it was introduced and the 40 year mortgage has been gaining in popularity as well. Initially people gasp at the thought of a 40 year mortgage; however, the flexibility associated with the longer amortization makes is appealing for many.

With the new set of rules, buyers that require mortgage insurance will be required to have a minimum down payment of 5 percent and the longest mortgage available will be 35 years. Many first time home buyers are rushing to the market to take advantage of the old mortgage options before they are changed. A few banks; however, are already announcing plans to stop offering zero-down and 40 year mortgages immediately. This means that down payments are going to be a factor in all first time buying just in the same way they were in previous generations.

One method of obtaining a down payment is to borrow the money or use products that are offered by some banks that make the down payment for you as a kind of bonus; the draw back is higher interest rates. Setting up preauthorized transfers into a high interest savings account for you pay check is a method to save and come up with a down payment the old fashioned way. These savings accounts do not pay a lot but they are risk free; unlike the stock market.

There are hidden benefits of the new mortgage rules, such as saving a little on mortgage insurance premiums as well as savings in interest over the years. Just going from a 40 year mortgage down to a 35 year mortgage on a $250,000 mortgage could save close to $50,000 on a 5 percent interest rate.

Who would have ever thought that we would need to be aware of the energy draining habits we have been doing for years? This new change is as bad as quitting a bad habit such as smoking or being a shopaholic!

How are we going to remember to turn the television off, turn the lights out when leaving a room and unplug electronics each night? When we get the utility bill, I'm sure that will be a huge reminder...ouch! This may mean we are unable to buy that newest designer handbag…torture!

Other things that will help save money would be to replace your old doors and windows with new energy-efficient ones. But you say “Wouldn't that be too expensive?” The government is now offering tax credits of up to 30% or $1500 for installing these. There are a few other good reasons for doing this. First, you'll receive a tax credit from the government, while enjoying immediate significant savings each month on your energy bill. Not too shabby for a one time investment. You won't get any returns for last years' outdated shoe collection!

Paying the window company to install these energy saving windows and doors will help the economy by keeping people working! Keep in mind these windows must need to have a U-factor rating of .30 or lower for maximum efficiency and to be qualified for the credit.

Another energy saving strategy that will earn tax credits is new home insulation and roofing. Air conditioners, boilers and furnaces can meet the energy guidelines if they were installed no earlier than 2009. Solar water heaters qualify if half the energy generated comes from the sun. The solar water heater must be certified by the Solar Rating and Certification Corporation (SRCC). The water from these solar water heaters must be used in the dwelling and not for swimming pools or hot tubs. I wish they would revise those qualifications!

Letting go of that gas guzzling Hummer might be a little hard to do, especially trading it in for a Hybrid car or SUV! You may have to think about the space and the power you lost when you start driving your Hybrid, but you'll have quite a bit more money in your wallet for...well, paying down credit cards? This would be the smartest thing to do the savings; not too exciting, but smart!

Earn from $250 to $3150 with a tax credit from Hybrid purchases made after December 31, 2006 and on or before December 31, 2010. The tax credit amount depends on the fuel economy and the weight of the vehicle. This will be phased out from each manufacturer after they have sold 60,000 qualified vehicles and will be gradually reduced after that over the course of another year. Note: even if you buy a gas or diesel powered vehicle, certain models will be eligible for a tax credit.

Remember the good ol' days when we could drive around in muscle cars and fill up on $20.00? Well maybe you don't, but with this new economy and implementing new energy saving strategies, we will learn to enjoy the more basic things in life. There's a good possibility we will see people coming together. We might be coming together at the newest thrift shop!

Article Source : Canada Real Estate Market

About Author

Both Jennifer Stromsteen & Verona Raymond are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Jennifer Stromsteen has sinced written about articles on various topics from Real Estate, Brain and Anger Control. J Stromsteen has many years expertise in the finance, real estate, and insurance industry. She contributes to various websites such as where. Jennifer Stromsteen's top article generates over 74000 views. to your Favourites.

Verona Raymond has sinced written about articles on various topics from Disease & illness, Adsense and Real Estate. Verona Raymond knows helpful money saving strategies for today's economy. For more helpful tips and valuable e-book,. Verona Raymond's top article generates over 18100 views. to your Favourites.