This guest-post is brought to you by Miranda.
The environment is getting a lot of play these days. And many companies want to get in on the action. From ads hoping to lure customers to “green friendly” products and services to PSAs on how to conserve, the environment is hot. And now mortgage lenders want to cash in on the environmental fervor. And why not? Especially if it could save you money as well.
One of the latest “green” products is what are known as green mortgages. These are mortgages that promise to waive fees if you are getting a home that is energy efficient. Major companies, as well as local lenders, are offering incentives such as a lower interest rate, or even waived closing costs, if you go green.
For home equity loans and lines of credit, this means that if you are making upgrades to your home, your costs could be waived if you are adding better insulation, solar panels, energy efficient windows or other environmentally friendly home improvements.
In the case of buying a home, you can get your closing costs waived if you have the home certified by a third party as energy efficient. And if you are building, some construction loans are incentivizing for energy efficiency.
It’s always a good idea to shop around for a mortgage loan. But now you can look for a lender that offers green mortgages. This is a great way to make going green more affordable for you. You help save the earth. And you save money, too.
Miranda is a professional writer and blogger. She writes mainly about personal finance issues for online and print publications. She contributes to the ethical investing Web site, The Panelist, as well as to the All Business Personal Finance Corner, and LoanShak. She authors the blog Yielding Wealth, and also the WorkShak blog on home business. Miranda and her husband, who is studying environmental psychology, are very interested in environmental issues, and work together to reduce their household’s carbon footprint.
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This is actually a very popular initiative in the UK. But the people who actually give the incentives out are the town councils, not the lenders.
To encourage people to make the move from old style houses to ones with better and more environmental-friendly consequences, they give cuts and a better rating to all those that undertake renovations to this end.
People are encouraged to put in better insulation, roofing and the like. Houses older than 10 years are a special focus.
Good on the U.K.!
Here in the U.S., you can get a tax credit for some things, like installing solar panels, but in general the tax credits are tiny.
Pick a developed economy, and you will find that any you pick is ahead of the U.S. in environmentally friendly efforts.
This is actually the first time I’m learning about green mortgages! I’ve never heard of it because we don’t implement it in Malaysia :(
But it sure sounds like a very good option, especially for environmentally-conscious people. Plus, it shows how much the authority cares for the environment too!
Thanks for sharing with us, Miranda! :)