My column for the September issue of Builder & Developer magazine is now posted online.For this issue, entitled "Mortgage Interest on the Rise," I reviewed the current state of how green mortgages can help soften the blow of rising interest rates to aspiring homeowners. An excerpt:
As the concern about rising interest rates have many people in our industry wondering about the potential impact on housing demand and prices, an often overlooked alternative for additional financing is the green mortgage, especially for the latest energy efficient new homes.
Although they can be difficult to obtain, most energy efficient mortgages (or EEM) programs let buyers qualify for bigger loans than they would otherwise by folding in the additional cost of making improvements for energy efficiency or of purchasing an already energy efficient home. Another version of the green mortgage provides discounts on loan fees or interest rates for homes that are certified as energy efficient.
Because mortgage interest payments are tax deductible, an energy efficient mortgage can be a more cost effective way to finance home energy improvements than using a credit card, bank loan or cash, which usually offer no tax benefits.
To read the entire September 2013 issue in digital format, click here.
