If you are like us, you realize that some of the most desirable real estate can be found in "walkable communities." These communities can be a great way to live a convenient and environmentally beneficial lifestyle. In searching for homes in these areas, it is a great idea to keep in mind the huge number of options available to you. This leads to the question:
Can a mortgage really be green? Turns out, there is an option. Yesterday, I had coffee with a friend in the mortgage business. Surprisingly enough, we discussed the benefits of owning real estate along or near the light rail line. Following is information that was given to me based on our conversation.
What is a Green Home Loan?
It is a Home Loan for both Purchase and Refinance applicants. EEM offer lower interest loans to energy efficient borrowers. The EEM forecasts the future savings on energy efficient upgrades/improvements and allows the borrower to account for the savings as additional income. With increased income = increased loan amount.
What is the Science behind a Green loan?
It is a normal loan, no funky ARM or balloon mortgage. It is a simple Fixed Rate. Borrowers will be allowed an additional $4,000 or 5% of the loan amount (capped at $8,000) on top of their initial loan. A Home Energy Rating System (HERS) audit is required. This will bring to light the cost effective improvements. The cost of the improvements are required to be less than the cost of the energy saved over the life of the improvement. The EEM requires a final audit to verify improvements and allow for the release of funds. Similar to a 203k loan EEM funds will be held in an Escrow Holdback account. A Green Borrower will have 90 days to implement and finish improvements.
Is your House Green?
If you would like to learn more about how you can go Green with your Mortgage Loan, Feel free to contact me. It’s time to reduce your Homes “SQ Footprint”.. Your Mortgage Planner 2.0 William Doom
So remember, choosing a place to live comes with many options. Housing style, mortgage type, walk-ability and the age old saying of "location, location, location." With current pricing levels and current interest rates, I truly believe it makes a lot of $ense to look at homes near the light rail line when determining your options. If you would like to learn more about these areas, you are in the right place. Soon, Rail Life will be adding hundreds of pages to our site. This will include restaurants, shopping, sporting events and a real estate section un-like any other.
Your window of opportunity is coming. In fact, it rolls in to a light rail station near you on December 27th. Don’t miss the Grand Opening celebrations!