Going Green with your Mortgage
While many of us are environmentally conscious when sorting through our garbage for recyclables, shopping for organically grown produce, and selecting energy efficient electronics, not many of us have considered an environmentally friendly mortgage. How can your choice of a mortgage help the environment? It’s not really the mortgage you choose, but more the amount. Weather you are getting a new mortgage to purchase a new home or you are refinancing to make some home improvements you may want to factor in some extra money to make some green improvements.
Spending some extra money when you go to take out a mortgage can save you big bucks in the long run. Consumers can save up to 45% of their monthly utility bills by making some energy saving improvements around the house. These improvements can be as simple as doing some caulking, to upgrading heating and cooling systems, or even a solar element. When choosing what kind of energy saving improvements to make it is important to consider those that will offset the cost of taking a larger loan. It is also important that you plan to be in the home long enough to reap the benefits of the improvements.
These types of improvements not only improve the quality of life and bring down the expenses for the current owner, they also make the home more attractive to potential buyers when the time comes to sell. Not to mention the benefit to the community and the environment as a whole.
Ultimately whether or not a mortgage is green is up to the borrower and what they choose to spend the money on. Some banks do offer some counseling on making environmentally friendly improvements. In some cases borrowers can qualify to borrow more based on the results of an energy audit and commitment to make improvements.
Some extra research on the part of the buyer can uncover rebates and incentives that make the process even more affordable. “To encourage its customers to build Energy Star compliant homes, Bank of America offers up to $1,000 off its closing costs, according to Michael Kelly, first mortgage product manager with Bank of America in Minneapolis” These incentives and rebates vary significantly from town to town, and over time. Search the web to find programs that could apply to you.
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