MonthMortgageIncreaseMonthlyEnergy Savings
CuuvCs/Bf
1
$182.20$16.71$165.49
2
$3.94$16.71$152.72
3
$3.94$16.71$139.95
4
$3.94$16.71$127.18
5
$3.94$16.71$114.41
6
$3.94$16.71$101.64
7
$3.94$16.71$88.87
8
$3.94$16.71$76.10
9
$3.94$16.71
$63.33
10
$3.94$16.71
$50.56
11
$3.94$16.71
$37.79
12
$3.94$16.71
$25.02
13
$3.94$16.71
$12.2514
$3.94 $16.71
$0.52
15
$3.94$16.71 $13.29
16
$3.94$16.71 $26.06
17
$3.94$16.71 $38.83
18
$3.94$16.71 $51.60
2009 INTERNATIONAL ENERGY CONSERVATION CODE
FOR NEW HOMES IN
MASSACHUSETTS
One o the major barriers to energy code adoption across the country is the concern thatnew codes will add to the purchase price and potential buyers will not be able to aord thehomes they want. In Massachusetts, upgrading homes to the 2009 International EnergyConservation Code will actually reduce out-o-pocket expenses or homeowners – paying o their initial investment in a matter o months.For the average new home, BCAP estimates the costs o the new code will add a total o $911in construction costs—an increase o only 0.3%. When this amount is rolled into the averagemortgage, real costs to homebuyers will mean a down payment increase o $182.20, and$3.94 extra on monthly mortgage bills.These added mortgage costs will be oset, however, by monthly energy savings o $16.71,helping homebuyers pay o their initial investment in only ourteen months. Ater breakingeven in month ourteen, the home will return buyers a prot o $13 per month—or a totalreturn o $132 every year. This return on investment is graphed below and presented as abalance sheet at right.
Cumulative Beneft
Monthly Benet:
+$13
Prot ater Year 1:
-$25
Energy Code Payback for Massachusetts Single Family Homes
Monthly MortgageIncrease:
$4
Monthly EnergySavings:
$17
Down PaymentIncrease:
$182
-$5001 72 8 93 4 10 11 125 6
$50-$100-$150-$200
Month
This model assumes an average sale price of $267,451 for a
2,400 square foot home. The mortgage is conservavely set at30 years, with 20% down and the current average naonwideinterest rate of 5.05%. With a lower down payment—such as10% down—consumers will break even on their investment
even sooner.
Break Even
$ 1 3 pr of t
ever y mont h
Search History:
Result 00 of 00
00 results for result for
p.
More From This User
Notes
Load more
