Energy Savers Less Likely to Default on Home Loans
The Seattle Times on Sunday reported that people who invest in energy saving homes are 32% less likely to default on their mortgages than other borrowers.
If you buy or own an energy-efficient house, does this make you less likely to default on your mortgage? Is there a connection between the monthly savings on utility costs and the probability you’ll pay your loan on time?
A new University of North Carolina study suggests the answer to both is a resounding yes.
Researchers ‒ who were careful to control for numerous factors ‒ noted that the average cost of the homes in their study was $220,000, removing the possibility that the energy-efficient properties they studied were high-end houses purchased by families who are less likely to default. Simply put, energy savings translate into more money borrowers can apply to their mortgage. Read the full article at the Seattle Times.