The Millstone Times February 2022

REAL ESTATE

Joseph J. Carbin Plumbing 609-259-2235

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Septic Pumping Water Conditioning Water Heaters • Well Pumps

SERVICING CNJ SINCE 1960 FamilyOwned & Operated Born &Raised in Millstone Township EMERGENCY SERVICE AVAILABLE I I Lic #9615 • Master Plumber NJ Lic # B109615

What is a Green Mortgage? By, Surabhi Ashok

A green mortgage, or an energy efficient mortgage, is the mortgage of environmentally friendly, or green, buildings. It lets a buyer borrow money for the sole intent of paying for energy efficient renovations to their house, which means that the loan is just added on to the primary mortgage. A lender would offer a buyer benefits on a house if the buyer can prove that the prop- erty in question meets environmental standards. Green buildings are any structures that positively affect the climate and the natural world and reduce negative impacts through its construction or operation. More specifically, a green building could use natural resources efficiently, use renew- able energy, practice recycling methods, use sustainable materials in its construction, adapt to changes in the environment, improve quality of life for its occupants, and more. A green mortgage can save a buyer money and reduce their building’s carbon footprint all at once. For example, updating a building’s insulation can save 20% on heating and cooling costs. Since heating and cooling accounts for 70% of the energy used in a U.S. home and 60% of those houses aren’t insulated properly, updating a building’s insulation can save costs and increase quality of life for occupants. This type of mortgage should be desirable for lenders and banks as well because it presents lower risk. For instance, green buildings cost less to run, which means that banks are more inclined to lend to a buyer because it is more likely the buyer will repay their loan. Additionally, there is an increased “green” value to these types of buildings compared to a property without any environmental protocols. This “green” value can make a lender more appealing and increase their business. Some mort- gage lenders are federally insured like the FHA, the Federal Housing Administration, and VA, Department of Veteran Affairs, and other companies like Fannie Mae and Freddie Mac. To get a green mortgage, an Energy Rater has to assess how energy-efficient the building in question is. The resulting Home Energy Rating System (HERS) Report, which consists of the professional rating, recommendations for upgrades, and cost estimates, will determine how much money a person qualifies for to update their site. In a world that needs to become more environmentally conscious in order to survive, people should consider a green mort- gage if their physical assets need upgrades because it is eco-friendly and cost beneficial. Sources: https://www.worldgbc.org/news-media/what-are-green-mortgages-how-will-they-revolutionise-home-energy-efficiency | https://www.worldgbc.org/what-green-building | https://www.mortgageloan.com/environment

30 The Millstone Times

February 2022