To combat skyrocketing heating costs, Priority Mortgage Corp
launches Energy Efficient Mortgage program in 37 states.

Lansing, MI (October 18, 2005) – To help combat skyrocketing heating costs this winter, Priority Mortgage Corp has announced their bid to offer Energy Efficient Mortgages in 37 states. Indigo, one of the premiere Energy Efficient Mortgage lenders in the US, was the first mortgage company to successfully close a conventional Energy Efficient Mortgage in Michigan.

"With the Energy Department predictions that natural gas prices could increase by as much as 71% and that heating oil prices could rise by 31% this fall, our timing couldn't be better." states Norm Ferrier, branch owner for Priority Mortgage Corp. "Many of the families that we've helped to date with the Energy Efficient Mortgage have saved anywhere from 30% to 60% on utility costs annually."

The Energy Efficient Mortgage, created by Fannie Mae and offered by Indigo Financial, is a smart and economical way for homeowners and prospective homebuyers to quickly lower their monthly bills and lower the overall operating cost of the home.

This unique home financing option begins like any other mortgage with the application for the loan. It works ideally with existing homes (purchase or refinance) and has additional benefits for new construction projects as well.

For existing homes, once a homebuyer has been pre-qualified, the home is subject to an energy audit to determine how its efficiency can be improved. The report that is generated shows the current or prospective homeowner a menu of energy related improvements, their installed cost, as well as the impact on the home's bottom line.

"Our client then gets to choose which improvements they would most like to do," says Joel Wiese, a manager for Indigo, "Giving them the freedom to make the choices that are best for their financial situation and the efficiency of the home."

Everything from windows and doors, insulation, heating and cooling systems, hot water heaters, lighting and photovoltaic systems (solar power) can be selected. Wiese explains that most any improvement that makes a home more efficient can generally be included under the Energy Efficient Mortgage program.

When the improvements have been settled on, the appropriate amount money is then placed in escrow and is rolled into the mortgage when the work has been completed after closing.

A unique aspect of the Energy Efficient Mortgage is that the amount the homeowner can borrow to make improvements is based on 15% of the appraised value, rather than on the available equity. On certain mortgage types, this means that even if the homeowner has very little equity they can still qualify to make energy efficient improvements to the home.

In the example of a $100,000 home, the current or prospective homeowner could borrow up to $15,000 to spend on energy related improvements.

"We usually see our average client spend around $7500 on upgrades. That's the equivalent of about a $46 increase in the monthly mortgage payment." says Ferrier. "The result is that we've seen utility costs get cut by as much as $60-$190 per month which makes monthly cash flow positive from day one."

For borrowers looking to build a new high efficiency or even Energy Star certified home, the energy savings is used to help qualify our clients for the home. Additionally the equity position for the borrower is improved.

"No one really wants to throw their hard earned money out the window, but with an inefficient home, many are simply doing just that. The good news is that you now have the ability to make a change very quickly and affordably, and put your money to much better use." Wiese said.

As Fannie Mae's Bob Sahadi, Vice President for Housing Impact agrees. "The savings that can result from energy-efficient homes can make homeownership more affordable for individuals and families. We know that those who spend less on energy costs can put more toward the cost of purchasing and maintaining a home. Fannie Mae is pleased to partner with Priority Mortgage Corp to offer such an innovative mortgage product."

Because the Energy Efficient Mortgage can be used for the construction of a new home and the purchase or refinance of existing homes in conjunction with every government and conventional mortgage program, it's a familiar process for many.

Priority Mortgage Corp is a mortgage company based out of Lansing, MI that serves 37 states with the Energy Efficient Mortgage. For more information, please visit Priority Mortgage Corp online at www.EnergyStarLoans.com or by phone (517) 483-5121, toll-free (877) 867-7095.