Public interest in green related industries has soared recently and the interest and need for green mortgage programs has not subsided, even in these tough economic times. It is getting easier and easier to make your home “green” than it ever has been. With the advent of cheap solar panels, wind energy along with installation improvements, a green mortgage can give you energy savings along with a lower interest rate for your home loan.
Some of the things you can do to your home and open yourself up or or qualify for a green mortgage includes solar panels, environmentally sound materials, and energy efficient appliances, rainwater collection, and landscaping that uses minimal water.
The premise behind green mortgages is that you will use fewer natural resources and save money on your monthly utility bill. This frees up money for the home owner by allowing them to qualify for a larger mortgage or a cheaper mortgage payment.
The typical savings on a green mortgage is .125% to .25%, over 30 years. A home owner with a .25% savings on a 250,000 mortgage would save over 20,000 dollars in interest over 30 years.
So how would you go about qualifying for a green mortgage?
You can qualify for a green mortgage on new construction if the builder or developer meets energy efficient guidelines. A person that rates home energy can also inspect the home and issue and issue a home energy rating system or HERS.
You can also receive the benefits of making your home green by taking advantage of the energy policy act. If you are a homeowner who conserves energy you can be given tax credits which will allow you to keep more dollars in your pocket.
Fannie Mae has recently introduced a green mortgage initiative. It is a mortgage program for bored new construction and existing properties. One added benefit of a Fannie Mae green mortgage is that you can finance up to 100% of the home’s value. The Lender on this product is GMAC Bank.
A green mortgage may be a great program to not only save homeowners money, but help the economy at the same time. Homeowners with existing homes would need to have energy efficient appliances and other green aspects built into their home which gives rise to the job market.
With the economy suffering a green mortgage might help the sluggish real estate, development, construction and mortgage professions. Industry professionals that joined the Green movement will have the added benefit of distinction, branding and the peace of mind that they are helping the environment.
