Mortgage Rate News

Whether it’s a first home mortgage, or a second home mortgage, it is possible to save money by going green. A product called a green mortgage is being offered by more and more lenders around the country.

Citi, Bank of America and JP Morgan Chase all offer some version of a green mortgage. And if you look around, you might find local mortgage lenders that do as well.

Green mortgage

A green mortgage is one in which the mortgage lenders offer special terms if you buy a home that meets certain environmental standards. If you buy a home that was built using green building practices, or if you have an energy audit before buying, it is possible to have the interest rate reduced — or the loan origination fees waived. It just depends on the green mortgage program in question.

Save money on green home improvements

This is an area that can help you save a great deal of money in the long run. Some mortgage lenders give you special rates on a second home mortgage that you take out to make green home improvements, like adding insulation or better windows. These green home improvements can also extend to getting new EnergyStar appliances and installing solar panels.

Not only are there green mortgage products available in terms of a home equity loan, but there are other savings as well. Many states offer grants to those wishing to build a wind power turbine or install solar panels. There are grants for energy efficient windows and insulation. Additionally, there are federal (and state as well) tax benefits when you make green home improvements. Speak with your accountant or other tax specialist to find out what you can do to take advantage of these tax offerings.

Going green doesn’t have to mean that you lose money. Indeed, many green home improvements pay for themselves in a few years, and then you start saving big over the long run.

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second home mortgage, green home improvements, mortgage lenders