The green movement has reached the home loan industry in the form of green home loans. With everyone moving towards products that are eco friendly, there is a movement towards making efforts to ensure that people save on non renewable energy sourced and look at options that are greener. And green home loans are a great way to ensure that individual homes also use renewable energy sources to power up their homes.
Since the initial cost of installing units that help in harnessing renewable energy, people are generally unwilling to spend that extra amount of money. Green home loans gives that extra push to people to make that investment due to the rebates that they can expect if they opt for green homes or install solar panels or use green appliances at home.
If you buy or build a sustainable house, the interest rate that you can expect with green home loans is likely to be lower. Some of the sustainable products that you may have to invest in include solar hot water, rainwater tanks and other water and energy savings equipment. Opting for a sustainable home, helps you in getting a lower rate with green home loans and also saves you money on utility bills too.
To give you an idea of what savings you can expect, consider a 0.25% rebate on green home loans on a $300,000 loan for 25 years. You can stand to save more than $14,000 over the life of the loan. This reduction easily covers up for the extra cost of energy savings units like solar panels and the like.
Mel writes about green home loans among other finance related topics.
