Month Mortgage Increase Monthly Energy Savings CuuvCs/Bf1 $225.99 $18.46 -$207.53 2 $4.88 $18.46 -$193.95 3 $4.88 $18.46 -$180.37 4 $4.88 $18.46 -$166.79 5 $4.88 $18.46 -$153.21 6 $4.88 $18.46 -$139.63 7 $4.88 $18.46 -$126.05 8 $4.88 $18.46 -$112.47 9 $4.88 $18.46 -$98.89 10 $4.88 $18.46 -$85.31 11 $4.88 $18.46 -$71.73 12 $4.88 $18.46 -$58.15 13 $4.88 $18.46 -$44.57 14 $4.88 $18.46 -$30.99 15 $4.88 $18.46 -$17.41 16 $4.88 $18.46 -$3.83 17 $4.88 $18.46 $9.75 18 $4.88 $18.46 $23.33 2009 INTERNATIONAL ENERGY CONSERVATION CODE FOR NEW HOMES IN NORTH CAROLINA One othe major barriers to energy code adoption across the country is the concern that new codes will add to the purchase price and potential buyers will not be able to aord the homes they want. In North Carolina, upgrading homes to the 2009 International Energy Conservation Code will actually reduce out-o-pocket expenses or homeowners – paying otheir initial investment in a matter omonths. For the average new home, BCAP estimates the costs othe new code will add a total o$1,130 in construction costs—an increase oonly 0.4%. When this amount is rolled into the average mortgage, real costs to homebuyers will mean a down payment increase o$225.99, and $4.88 extra on monthly mortgage bills. These added mortgage costs will be oset, however, by monthly energy savings o$18.56, helping homebuyers pay otheir initial investment in only seventeen months. Ater breaking even in month seventeen, the home will return buyers a prot o$14 per month—or a total return o$144 every year. This return on investment is graphed below and presented as a balance sheet at right. Cumulative Beneft Monthly Benet: +$14 Prot ater Year 1: -$58 Energy Code Payback for North Carolina Single Family Homes Monthly Mortgage Increase: $5 Monthly Energy Savings: $18 Down Payment Increase: $226 -$50 0 1 7 2 8 9 3 4 10 11 12 5 6 $50 -$100 -$150 -$200 -$250 Month This model assumes an average sale price of $267,451 for a 2,400 square foot home. The mortgage is conservavely set at 30 years, with 20% down and the current average naonwide interest rate of 5.05%. With a lower down payment—such as 10% down—consumers will break even on their investment even sooner. Break Even $14 proft every month
