Getting a green mortgage
Purchasing an energy-efficient home may earn you a break on your mortgage. The thinking: You'll save money on utility bills over time, so why not apply that savings to mortgage costs? "Green" mortgages come in three flavors: Discounts for energy-smart new homes. Bank of America and Citigroup offer $1,000 off on closing costs if you buy an energy-efficient home (many new home builders incorporate the government's Energy Star standards). JPMorgan Chase gives some borrowers more credit and $500 off closing costs for homes with special insulation. The State Employees Credit Union in North Carolina caps closing costs at $350.00. Credit for lower energy bills on old and new homes. Some lenders may qualify buyers for higher loan amounts, factoring in long-term savings on utilities and adding that to a buyer's qualifying income. Help with improvements on an older home. Some lenders incorporate the costs of energy-efficient upgrades (windows, heating/cooling systems, insulation) into your loan amount. If improvements are not made before the loan closes, the upgrade funds are held in escrow. Plus, check state incentives. Go to naseo.org to find contact info for your state energy office. Then call and ask about any low-interest loans for energy-efficient renovations on existing homes.