Have You Considered a Green Mortgage?

When it comes to getting a home mortgage loan, many people do not realize that it is possible to save money by getting what is called a green mortgage. A green mortgage is a product that some major mortgage lenders are offering to people who make efforts to get a more energy efficient home. While it is most often offered by major lenders, like Bank of America and JP Morgan Chase, some local lenders may offer green mortgage incentives. This can be a great way to save a little money on your home mortgage loan, while helping the environment. It never hurts to ask.

Discounts on interest charges for green mortgages

One of the ways that some mortgage lenders offer discounts is through points or through interest rate reductions. If you choose a home that is energy efficient (you may have to have a certified energy audit in order to verify), then some mortgage lenders will take off a little on your home mortgage loan interest rate. Even half a percentage point will go a long way in offering you savings over the life of your home mortgage loan.

Loan origination fees and the green mortgage

Some mortgage lenders won't change you interest rate, but will instead offer to waive your home loan origination fee if you get a green mortgage. If you buy or build an energy efficient home, it is possible that a home mortgage lender will waive the fees that go with getting a loan. This can be anywhere from $1,000 to $3,000 or more. This a big deal. You can use that money toward the down payment, or just keep it in your pocket.

Other environmentally friendly mortgage lender programs

Some mortgage lenders won't give you a monetary reward for going green with your new home. However, they will make a donation in your name, or even plant a tree and credit you with it. If you are worried about offsetting your carbon output, this might be the way to go. Just don't pick a mortgage lender entirely based on whether or not a tree will be planted in your name. Make sure that the lender is charging slightly higher prices as a result.

A green mortgage can be a great way to save money and feel good about helping the environment. But you still need to shop around and get an idea of whether or not you getting the best option for you. Because, after all, it is still a major financial commitment.