Energy-efficiency loans grow in volume
The volume of energy-efficiency loans being made available to homeowners is demonstrating the desire of individuals to improve the sustainability of a property. Residential property owners are working hard to decrease the energy their homes consume month after month. However, turning the thermostat down and making sure to turn off the lights in the house can only do so much.
As a result, many property owners are looking to invest in energy-efficient technologies that will reduce outgoing costs. Los Angeles Times reported that for the growing number of home purchasers who care about energy efficiency, lenders are now beginning to offered. This took considerable time to put in place and is yet still a new feature for many financial institutions. There is considerable reason for banks and lenders to consider adding green loans to services as including green features to a home is expected to increase the value of a property. The net savings a green feature provides a homeowner is indicative of a key selling point in the future.
According to the news source, the inclusion of green features in a home will also have a significant impact on the overall mortgage situation a homeowner finds him or herself in. Owners or homes with reduced energy consumption pay lower utility bills than comparable properties without green technologies. So, it’s possible that a lender can factor these out-of-pocket savings into calculations of household debt-to-come ratios and appraised valuations, which will permit for larger mortgage amounts. This is especially important for first-time homebuyers who haven’t built up a credit or mortgage history.
Some of the green technologies with the greatest potential for savings include solar panels, light emitting diodes and geothermal heat pumps. Solar panels can provide all of the necessary electricity for a home, or contribute to the reduction in electricity being purchased from utility companies. LED bulbs have an extensive life – almost five time longer than incandescent bulbs and use significantly less energy.
Geothermal heating and cooling systems can really provide exceptional savings. Heating and cooling often encompass the largest utility cost a homeowner will experience. A geothermal pump system will save a homeowner between 40 and 60 percent on annual heating and cooling costs. This means that the money that typically is spent to control the temperature inside a home is saved, which allows a homeowner to make investments in other parts of the house or make larger mortgage payments.
A energy-efficient technologies become more common in everyday properties, lenders will come up with strategic ways to make further investments in sustainable solutions. Homeowners are focusing their attention on reducing the cost of running a house and technologies like geothermal heat pumps offer a potential solution. Instead of spending money each month on oil or natural gas, individuals can rely on the constant presence of the energy available in the earth right at the base of a property.
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