Example of FHA Energy Mortgage
| 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 |
