At the recent Green Real Estate 2008 conference (http://www.ecobroker.com/conference/) for Ecobrokers (www.ecobroker.com/) a number of lenders sat on a panel. The lenders from Country Wide, Wells Fargo, My Energy Loan and others spoke about the current and future trends in lending.
One of the main themes running through out the entire conference as using what is already available and making it better. Ideas like “green-o-vation” were used. “The greenest house available is the one you already own.” And words used consistently regardless of the subject of the panel were: conservation, audits, tune up, quality, focus, durable, testing, performance and optimize.
For those who are familiar with PITIE or EEM’s (Principle, interest, tax, insurance and energy) this formula has basically disappeared due to lack of use, interest and understanding.
But a new formula may be taking PITIE’s place – PITILUM. Lenders: What are your thoughts on this?
- Principle
- Interest
- Tax
- Insurance
- L= location
- U=Utilities
- M=Maintenance
Location being factored in for people who live near public transportation or walking distance to work and school. Take what would be a car payment, car insurance and maintenance as a factor?
Utilities being factored in for houses with passive solar design, 95% efficient furnaces, solar water heaters and other improvements. If the owner has a house that uses much less energy could the difference be factored into a loan?
Maintenance being because the home owner doesn’t have to pay to maintain a house with sustainable features such as a 50 year roof, zero scaled yard, and low maintained exterior. Could the lack of maintenance be factored into the payment and insurance costs?
