We all know that energy efficient homes save money for their owners – money they can use to more easily pay their mortgage and maintenance costs. Current mortgage underwriting guidelines, developed in the 1940′s, don’t take this into account. They ignore the potential hundreds of dollars in savings that an energy efficient home can provide, compared to an inefficient home. Better information about the full costs of home ownership should include not only the principal, interest, taxes and insurance, (known as PITI) but also the energy cost. The idea is to revise these outdated credit policy decisions by the federal mortgage programs (Fannie and Freddie Mac) which guarantee more than 90% of all new mortgages. This will allow home buyers to more easily qualify to purchase an energy efficient home, set rules for appraisers to value energy efficient improvements, thereby encouraging builders to include them because they will get paid for any additional up-front costs.
The SAVE Act (Sensible Accounting to Value Energy) is championed by Senator Michael Bennett (D – CO) and supported by home builders as well as energy efficiency advocates. For more
And while you are at it, check out a zero energy home in Frazer Colorado, designed by a friend of elephant, Bryan Bowen
Posted by elephant’s Realtor – Liz Benson