Home Improvement Projects Can Reduce Energy Costs

By Karen Lawson
CMR Columnist

These days, you may have to sit down to endure the stress of opening your utility bills. Energy costs are soaring, and it's getting more difficult to plan your monthly budget. A home equity loan used for certain home improvement projects can help reduce and stabilize your home energy costs.

Heating and Cooling Your Home: Big Bucks Out the Window

According to the Department of Energy, heating and cooling our homes typically accounts for 44% of our monthly utility bills. By installing more efficient climate control systems, windows, doors and insulation in your home, you can significantly reduce home energy costs. When shopping for new heating and cooling systems, it's important to check the Annual Fuel Utilization Efficiency (AFUE) and Seasonal Energy Efficiency Rating (SEER). Energy efficient climate control systems, when combined with the following home improvements, can help control energy costs.
  • Energy efficient appliances
  • Weather stripping and windows
  • Drought friendly landscaping and irrigation systems
It's true that these home improvement projects initially cost more than your utility bills, but over time, they can create considerable savings and add value to your home.

Home Equity Loans: A Low Interest Source of Funds for Home Improvement

Although home mortgage rates are rising, a home equity loan can be a great investment if you are concerned about energy costs or want to update your home. The interest paid on home equity loans may be tax deductible, while interest on consumer loans and credit cards is not. Your home equity loan can pay for new appliances and weather stripping in addition to major home improvements such as new heating and air conditioning. When considering home improvement projects, it's important to consider the big picture. Your financial advisor can help you choose your home improvement projects, and a home equity loan to pay for them.

Source
Colorado State University Cooperative Extension

About the Author
Karen Lawson is a freelance writer whose interests include environmental issues. She has more than fifteen years of experience in mortgage banking, and holds an MA degree in English from the University of Nevada, Reno.

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