Sustainable Living

Save the earth and your wallet: The buzz about "green" mortgages. Written by Lori Johnston

Going green can be cost-efficient even before you get the keys to your first home. Energy-efficient mortgages, also known as "green mortgages," promise lower interest rates and can lessen utility bills. The idea is that you can qualify for a more expensive house-and bigger loan-because you will save more on utility bills, therefore having money for a higher payment than you envisioned.

Typically, buyers can borrow for energy improvements equaling up to 15 percent of an existing home's current value and 5 percent of a new home's value.

 
Those measures could result in $85 to $125 off monthly heating, cooling and water bills, estimates Norm Ferrier, branch owner/manager of Interactive Financial Corp., a lender that offers the mortgages in Georgia (energystarhomeloans.com).

"Because that house operates on a lot less money than a typical home, there's added value," says Ferrier, noting that energy-efficient mortgages were first introduced by President Carter in 1979.

Fannie Mae, the Federal Housing Administration and the Veterans' Administration all offer energy-efficient mortgage products, with various limits and requirements. Loans up to $417,000 are allowed under Fannie Mae's program.

To qualify, existing homes must have a Home Energy Rating System evaluation. Specialists may pinpoint weak spots, such as mechanical systems, and suggest improvements, Ferrier says. Expect to spend $150 to $400 for a HERS rating, according to the National Association of Realtors.

For a new home, check to see if it meets Energy Star qualifications (an Environmental Protection Agency program) that incorporate energy-efficient products and construction. Energy Star homes can save up to 30 percent, or more than $600 per year, on energy bills, which typically run $1,900 a year, according to the program.

One Atlanta company, HomeFirst Mortgage Corp., has created the myEnergyLoan (myenergyloan.com), which company officials say has fewer limitations than the government-sponsored energy-efficient mortgages. To qualify, the homebuyer must buy a home that is certified by Energy Star, EarthCraft, LEED (Leadership in Energy and Environmental Design) or some other energy-rating service.

For a list of rating evaluators and energy-efficient mortgage brokers in Georgia, visit energystar.gov. Below, brush up on terms you should know with FirstHome's "green" glossary.

Energy Star
Energy Star is a government program that offers businesses and consumers energy-efficient solutions, making it easy to save money while protecting the environment for future generations. Currently more than 50 kinds of appliances, from furnaces to light bulbs, have met the strict guidelines that give them an Energy Star rating and save you money each month.
Source: www.energystar.gov

Earthcraft
EarthCraft is an Atlanta-based green building initiative that serves as a blueprint for healthy, comfortable homes that reduce utility bills and protect the environment. The organization grew out of a partnership between the Greater Atlanta Home Builders Association, Southface, government and industry partners.
Source: www.southface.org
 

LEED
The acronym stands for the Leadership in Energy and Environmental Design green building rating system. LEED is the nationally accepted benchmark for the design, construction and operation of high performance green buildings. LEED promotes environmentalism by recognizing performance in five key areas of human and environmental health: sustainable site development, water savings, energy efficiency, materials selection, and indoor environmental quality. EcoManor (ecomanor.com), the LEED-approved home of Rutherford and Laura Seydel, is one of the most environmentally progressive homes in the country, and it's right here in Atlanta.
Source: www.usgbc.org