Homebuyers who choose energy efficient dwellings will save on heating, cooling and electricity bills. That’s always been true. Now they can save more on mortgage costs as well through a new Green Purchase Incentive at Portland-based Umpqua Bank.
The bank recently began offering a credit off closing costs for homes that have received any of a number of green certifications – LEED, Energy Star, Built Green or the Oregon-developed Earth Advantage. Borrowers can save 0.375 percent of the purchase price, capped at $1,564. A $300,000 home would get a $1,125 discount.
“We want people to be aware of the energy efficiency of their home,” said Sean Brennan, a loan officer at the bank. “This is our way of encouraging them.”
It’s also a way to attract customers. “Their consumers are interested in this,” said Dakota Gale, a finance program manager at the non-profit Earth Advantage Institute who helped develop the program. “The people they’re attracting to the bank drive Priuses and want green homes. So it’s a customer acquisition strategy.”
Umpqua offered the credit for Earth Advantage certified homes last fall but only recently expanded to include other green programs. In the future it may offer it for refinancing as well, Gale said. Read more