Default risks are on average 32% lower in energy-efficient homes, controlling for other loan determinants, according to a study by the University of North Carolina -- Center for Community Capital. Many have speculated that energy-efficient homes should have lower default risks than standard homes because the lower energy costs would free up more money to make mortgage payments. A borrower in an ENERGY STAR residence is also one-quarter less likely to prepay the mortgage, the study found.
Residential Products Online content is now on probuilder.com! Same great products coverage, now all in one place!
billboard
Mortgage default rates about one-third less in energy-efficient homes
Borrowers are less likely to default on their mortgages if they live in an energy-efficient home.
PB Topical Ref
leaderboard2
Related Stories
A new study shows the risk of mortgage default is one-third lower for energy-efficient, Energy Star-rated homes—a factor lenders and Congress should consider when making mortgage loans and policy
The boom and then bust of nonprime mortgage lending in the United States caused enormous damage to individuals, communities, the national economy, and the global financial system, according to a report by the Joint Center for Housing Studies of Harvard U
Recent studies strongly suggest a homeowner's utility expenses and transportation expenses can be meaningful determinants of delinquency, default, and prepayment.
Changes to lump sum draws and credit risks assessments could cut the number of defaults by up to 50 percent
Utility bills are a major household expense, costing more than $2,500 for the typical American family.
This month's market update looks at how the burden of student loans may not affect the housing market, how lenders are waiting for new mortgage rules, and questions if lower gas prices can help housing's recovery.
boombox2
boombox1
halfpage1
native1
catfish1