WASHINGTON - A new bill being proposed in Congress would require mortgage lenders to include expected energy-costs savings into the value of a home. The bill's sponsors call it a win-win for the economy and the environment.
"This would allow folks to retrofit their homes and be rewarded for it over the life of the loan," Senator Michael Bennet, D-Colorado, said.
Senators Bennet and Johnny Isaakson are sponsoring The Save Act, which would require lenders to account for expected energy costs in home appraisals.
So take a Maryland home. It is 75 percent-more energy-efficient than its older neighbors, saving the owner $1,500 a year. Under the act, that savings would factor into the value of the home as well as the borrower's ability to make the mortgage payments. Lower energy costs would therefore benefit borrowers, sellers, and even builders.
"It allows us to build and sell more energy-efficient houses, which is a win-win," Randy Melvin with Winchester Homes said. "It's good for us, it's good for the environment, it's good for the consumer, it's good for our country's energy independence."
The average homeowner spends more than $2,000-a-year on energy, which can be more than insurance or real estate taxes, which are factored into appraisals. Energy is left out of the equation.
"Let's say you install double-pane windows in your house that create energy efficiency, that's a cost as homeowner, but it's a savings that the lender can now recognize," Sen. Bennet said.
(Copyright © 2011 NBC Universal, All Rights Reserved)
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