Business & Finance :: February/March 2007

What is a Green Mortgage?

By: Ron Marini

A green mortgage is actually another name for energy efficient mortgages (EEM). These products have been around for more than two decades. They are also one of the best kept secrets in the mortgage industry. With the ridiculous cost of energy today these mortgages will become the focal point of any family’s budget. EEM’s are unique in their capacity to combine the traditional loan product with the cost of the energy improvements rolled into the mortgage. This can be done on both refinances and purchases.

EEM’s were first offered in the 80’s when rising energy cost was making the news. These mortgages however seemed complicated and very few lenders understood how they worked. The process is actually quite simple if you have the right Realtor and Lender team working for you.

Both Fannie Mae and Freddie Mac purchase EEM’S, while HUD, FHA and VA have their own programs. The most recent addition to this type of financing is The Dept. of Agriculture Home Energy Advantage Program launch-ed last June. Theses programs will increase the buying power for applicants who purchase homes under these programs.

The market for these programs is very small. The New Time reported less than 1% of all loans are EEM’S. So why the small interest? According to Steve Baden, executive director of Residential Services Energy Network (RESNET), most consumers and lender’s are not aware they even exist. Baden also states no one truly gave the educational or marketing awareness these products needed. They just were not on the radar screen. Now that the Real Estate market has slowed, lenders will now be looking at niche products such as these to create more business and differentiate themselves from the competition. Sun-Trust Mortgage is one of those lenders who offer’s these kinds of mortgages.

By participating in these programs the federal government will also give State and Federal Tax credits as well as rebates on certain items that are replaced with energy efficient appliances.

The key to participate in this program is to work with an experienced realtor and lender who are proficient with these programs and can work with you to ensure the home you buy will not be a cash drain on your energy bills while you will be helping the environment by using less fossil fuel reducing green house gases.

Ron Marini has helped thousands of people achieve their goal of homeownership. Whether you are a first time home buyer, refinancing an existing loan, remodeling, or building your dream home, Ron has a solid understanding of the area real estate market and what it takes to close your loan with efficiency and expertise. For more information, contact him at 302. 453.2350 ext. 223 or Toll Free 877.915.9159 ext. 223.

Buying, Selling & Financing in the New Market 2007

Seminar Date: Wednesday 02/28/07
Location: Christiana Hilton Time: 7:00- 8:30
Topic: Buying, Selling Financing in the New Market: Changing Strategies and the Green Advantage
Facilitated By:
Paul E. Hughes of Patterson Schwartz, contact # 443-553-5888
& Ron Marini of SunTrust Mortgage contact # 302-453-2350 ext. 223

The Real Estate Market isn't changing, it has changed. This is certainly a different Arena. The rules are the same, but the control of the market has moved to the buyers' side.

These Free Seminars are designed to inform the buyers/sellers on how to take advantage of this shift/opportunity.

So what do I, as a buyer/seller, need to know in order to take advantage of this change? What programs exist that are going to help me buy/sell my house and make the best deal?

What follows will be a series of articles highlighting different programs and strategies which should give the novice buyer as well as the seasoned Real Estate investor a wealth of information with which to take advantage of the new Market.

We are also concerned here at Suntrust about the future: yours and your childrens. Our first article and many to follow are about Green Programs and special financing which can produce a win, win situation for many buyers/sellers in the coming market. Along with other financing and strategy information they complete an integrity based approach to Real Estate.

Sponsored by Suntrust Mortgage, Paul E.Hughes and The Green Fox

For more info visit www.myecoagent.com + www.suntrustmortgage.com/rmarini