Mortgage lenders try to look at the big picture, considering things like taxes and insurance when deciding how much they can loan out to homeowners and buyers. However, there's a major ongoing expense that appraisers currently don't take into account – monthly utility bills. You don't need to be an electrician to understand that the money you pay for power each month makes an impact on your budget and even affects the value of your home. A bill currently in front of Congress – the SAVE Act – would acknowledge that reality and let federal mortgage lenders make energy efficiency part of their formula.

Increasing the Value of Your Home

Essentially, the SAVE Act would make it easier to get financing for efficiency upgrades, even folding funding for it into traditional mortgages.

“This bill would require federal mortgage agencies to recognize the energy efficiency upgrades in a home during the mortgage underwriting process, thereby increasing the value of the home,” President of the Alliance to Save Energy Kateri Callahan said in a statement. 

The SAVE Act claims it would bring a number of benefits in addition to loosening the drawstrings on bank financing for efficiency. Among them:

A Diverse Group of Supporters

The SAVE Act was first introduced in 2013. Although Congress has yet to vote on the measure, it has lined up a diverse group of supporters who aren't typically on the same side of major issues, from the U.S. Chamber of Commerce and the National Association of Manufacturers to the Alliance to Save Energy, the National Resources Defense Council, the U.S. Green Building Council and others.

In the meantime, there are a number of steps you can take around your home today to cut down on your utility bills. If you need any help installing efficient appliances or upgrading your home electric system, contact an expert electrician today.

Soaring Efficiency

The energy efficiency of several major appliances has increased dramatically over the past three decades. The AHAM report found that between 1981 and 2013,  average efficiency shot up by 46 percent for room air conditioners, 63 percent for freezers, 102 percent for washing machines, 123 percent for dryers and a whopping 217 percent for refrigerators.

Advances in technology have fueled the savings — for example, modern dishwashers use sensors to adjust how much water they use, and cut back when appropriate. Refrigerators have been almost entirely overhauled since their early days, with big improvements in insulation, compressors, heat exchange and fan motors.

Federal Intervention

The federal government has helped nudge appliances toward higher efficiency. Since 1987 the government has incrementally increased the efficiency requirements for most household equipment, with 25 new standards since 2009 alone. All told, the Department of Energy projects that its rules will save the nation more than $1.7 trillion by 2030, in addition to lowering our greenhouse gas emissions and impact on the environment.

Slashing Prices

Not only do modern appliances save you money on your utility bills, most of them are cheaper to purchase initially as well. The American Enterprise Institute noted that a common dishwasher in 1981 cost $359.88. By contrast, a similar model today goes for $349.99. Accounting for inflation and average wage, that’s a big discount. It would take the average worker 48.5 hours to purchase the 1981 model, while today’s dishwasher would take 17 hours of work at current average wages, according to the AEI analysis.

A separate study by the Appliance Standards Awareness Project found that the price of refrigerators dropped by 35 percent between 1987 and 2010. The bottom line: Households in the modern era save on appliances up front and over time.

Discover How to Save

If you are in the market for a new appliance, you might be shocked at how much you save on your electricity bill — replacing an older refrigerator, for example, can save you hundreds of dollars per year. Check out the federal Energy Star products listing to find equipment certified to meet the strictest efficiency standards.

You use it every day, but do you really understand electricity? It’s important, because, without understanding electricity, it’s hard to maintain electrical safety in your home. In order to understand electricity, you basically need to grasp five key concepts; we like to call them the five hidden mysteries of electricity.