What if you could save as much as $400 a month for the next thirty years on your energy bill? All you would have to do is add another $5000.00 to your mortgage or down payment. That’s what people can save when they decide to make the extra investment of buying an energy efficient home.
On the other hand if you are a real estate investor making a home more energy efficient can make you more of an upfront profit when you decide to sell the home. Experts like Dean Graziosi are paying close attention to energy efficient homes and the new green mortgages. Legislators, brokers and lenders are doing to promote this type of home. People that are in favor of greener homes, say that the new green home programs give the nation a lot of solutions.
In fact the new green mortgages are becoming popular among home buyers and real estate investors alike. These are mortgages where a lender will add as much as 15% to the sale price of a loan, when that amount is used to make the new home more energy efficient.
Green mortgages have been around since the 70s but are just now gaining popularity. For many years these types of mortgages lied dormant because of the easy availability of cheap oil, gas, and electricity. And that is without even touching the fact that cheap subprime loans were available for many years.
Lenders and mortgage brokers tried to avoid green loans because they took a long time to close and didn’t offer any extra profit for them. But now with the mortgage and financial market crisis, everything has changed! Lenders and even the government see green mortgages as a great new type of loan.
The Government is Promoting the Green Mortgage
Local government, major mortgage lenders and even the President are supporting green mortgages. Even the Economic Recovery Act of 2008 has a provision in regards to the green mortgage.
Another bill passed by the House Financial Services committee and now awaiting a house hearing, would give lenders other incentives if they offered lower interest rates on these Green mortgages.