Green Buildings Get Lower Interest Rates
The US Federal National Mortgage Association, Fannie Mae, will for the first time provide lower interest rate loans to green multi-residential buildings.
Fannie Mae will grant a 10 basis point reduction in the interest rate of a multifamily refinance, acquisition or supplemental mortgage loan for buildings with a green building certification. For example, if the market interest rate is 4 percent on the multifamily loan, the new rate is 3.9 percent with this pricing break. On a $10 million dollar loan amortizing over 30 years, the owner would save $95,000 in interest payments over a 10-year term.
Rick Fedrizzi, chief executive and founding chair of the US Green Building Council, which administers the LEED green building rating system, says this is both an incentive to build green and an incentive for existing buildings to achieve certification.
In addition to having a smaller carbon footprint, green buildings cost 19 percent less to maintain than their conventional counterparts, according to a US General Services Administration study.
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