The latest and greatest trend in going green is green mortgages. New "green" construction is now leading to more affordable loans. Ask your lender for further details, but one form is discounted closing costs. Bank of America has a program called the "energy credit mortgage program" and refunds buyers $1,000 if the home they are purchasing meets Energy Star's energy efficiency requirements.
In the case of homes with substantive energy savings, some lenders are even increasing buyers' debt ratios. This can allow for approximately $12,000-$15,000 more buying power. The rationale behind going green is simply this: less energy consumption = less energy costs; therefore, buyers can afford more in a mortgage.
Here are just a sampling of features which make a home "green":
- Energy Star Appliances
- Programmable Thermostats
- Fluorescent Light Bulbs
- Geothermal Heat Pumps
- Water Submeter Systems
- Bamboo Flooring
- Recycled Glass Tile
Save the world, save a buck, and buy more in a home...Go Green!
'Green Mortgages' Taking Root. Sacha Pfeiffer, Boston Globe Staff. Boston Globe. Nov. 15 2007.