| Next for Mortgage Lending: Green Mortgages |
|
| Written by Miranda Marquit | |
| Friday, 14 September 2007 | |
|
Can green mortgages help the lending industry overcome the subprime market crash? One of the national real estate trends, even in these times of subprime lending market woe, is green building. And with their industry struggling, some major mortgage lenders are trying to lure green-minded homeowners in with discounts for upgrades that make a home more eco-friendly. Companies like Citigroup Inc. (C), Bank of America (BAC) and JP Morgan Chase & Co. (JPM) are among the lenders pushing special programs for what are now being called "green mortgages." Citi and Bank of America are both offering $1,000 off of closing costs/fees for meeting certain standards, and JP Morgan Chase is offering $500 with spray-foam insulation. But it's not all just about Mother Earth. The Wall Street Journal reports that there is more behind this do-gooding than just concern for the planet: But just because the lenders have ulterior motives is no reason to completely write off these new green mortgages. Rolling the costs of environmental upgrades into a (usually second) mortgage is one way that more people can improve the energy-efficiency of their homes. These mortgage loan products are structured the same way as other fixed or adjustable rate mortgages, making it palatable for some who are wary of borrowing right now. States are getting in on the act as well. Pennsylvania, New York and Kansas are among states that offer subsidized green mortgages that can help homeowners "green it up." The good news is that, not only do such improvements help the planet, but they also save homeowners money. And the mortgage loan industry is hoping that it will attract a few more borrowers to help them out. Who know? Maybe green mortgages will soon include amounts for things like adding solar panels and other uses of alternative energy, in addition to providing savings for energy-efficiency upgrades. Disclosure: I do not own stocks in any of the above. I do have an online savings account with Citi, though. Site disclaimer. BAC 
C 
JPM 
Miranda Marquit 
Personal Finance 
Comments
(8)
...
written by David Neubert , September 17, 2007
Would be great if someone could start a Real Estate Investment Trust that held nothing but Green Mortgages and Green Real Estate.
...
written by Lynn Kenton, Realty Executives , October 12, 2007
Has anyone in California had any experience yet with green mortgages? With the voluminous amount of Ventura County homes for sale, programs like this could be an incentive to homebuyers and investors...
...
written by Erik Torgerson , February 01, 2008
If a major mortgage lender offered a green mortgage product would it be something that borrowers would have an interest in? If there was a major company that said, we will offer you an opportunity to finance carbon offsets in your mortgage with the understanding that you will then follow a list of ways to green up your household, using high efficiency light bulb, appliances, furnace, water heater, etc. Do you think that you would be willing to make these changes, which would create a savings to the borrower through lower utilities, but also give the lender an opportunity to buy Verified Emission Reductions from the borrower, so the home owner could profit from these changes, would that be something that would be sellable in todays market? I would love to hear questions and feedback!
...
written by Miranda , February 04, 2008
I would make the changes in a heartbeat. Unfortunately, the trick is convincing others that it would be worth it in the long run. We are an instant gratification society, and we have a hard time taking the long view in cases like these. But if more information got out on green mortgages, I think there is a chance that more people would be interested.
...
written by Viji Sashikant , May 02, 2008
Very interesting. I wonder if our local BAC & JPM are aware. I would like to have solar panels for heating and cooling in my own home, but the costs are horrendous. Plus, SC does not have net-metering. We have to get the utility companies involved.
...
written by Normand Bastien , July 01, 2008
Hi, I'm trying to find a company willing to finance a green overnite retreat spa. Its a simple franchisable project. Any ideas of who will look at and support my plan.
...
written by Karen , July 06, 2008
I am working on a national-scale effort to market green morgages and other energy-effient products and services to US consumers, since the main issue with these products seems to be consumer awareness... not only of the products themselves, but also of the savings possibilities. As Miranda says, there is doubt that Efficiency investments pay for themselves in just a few years... but with the assistance of tax breaks and mortages like these, many have a payoff in 3 years or less (which seems to be the sweet spot). I do believe that this space will begin to take off, but that better efforts to market to consumers can help accelerate the traction.
Please chime into this thread, or contact me at kbohannon6703@yahoo.com if you are in this space and interested in learning more/contributing ideas.
...
written by Jeffery DeMarco , August 06, 2008
Television show explains Energy Efficient Mortgages AND ALL OTHER U.S. Govt. FORMS
to squeeze out every penny the Govt. gives a U.S. Citizen to 'go green'. Watch TV show at: http://www.4EverGreen13.com Tag it:           | |
| Last Updated ( Monday, 17 September 2007 ) | |
| < Prev | Next > |
|---|
| Company Profiles |
| Individual Profiles |
| Movie Reviews |
| Culture-Celebrity |
| Opinions |
| Staff Recommendations |
| Resources |
 ThePanelist Latest Postings Alternative Energy Christian Investing Climate Women Neubert's Trades Social Culture Technology |
Copyright © 2006 - 2008 ThePanelist.com.
Subscribe to this comment's feed