I sell mostly older homes that aren't energy efficient. How great would it be if buyers could roll the cost of energy saving upgrades into their mortgages upfront? Take a $300,000 house with a 15 year old furnace, no central air and little insulation. What if the buyers could get a mortgage for $320,000....and use the extra $20,000 for a new furnace, central air, hard cell insulation for the attic, duct sealing, air sealing and weatherstripping? They would cut their energy costs by 30% or more. It makes SO MUCH SENSE. If their gas and electric bills average $300 a month, that means a savings of $90 a month or $1080 a year. We need Energy Efficient Mortgages.
In her article in The Daily Green http://www.thedailygreen.com/living-green/definitions/green-mortgages, Sally Denenn gave this example:
Example: When Patricia and Mynette Theard bought a home, their lender made it possible to add ceiling, floor and furnace duct insulation by adding $2,300 to their loan – bumping it from $142,500 to $144,800. That raised their monthly mortgage by $17, but their utility bills dropped by $45 monthly. (See their brief story here:www.pueblo.gsa.gov/cic_text/housing/energy_mort/energy-mortgage.htm)