Struggling mortgage lender Countrywide Financial found time to launch an initiative that will provide homeowners who buy “green” with a slight interest rate reduction on their new home loan.
The program, initially launched in thirteen states including Alaska, Colorado, Iowa, Minnesota, Oregon, and Utah, among others, will give borrowers a .125 percent mortgage rate reduction if they purchase a new home that meets recognized green and energy efficient standards.
“This program gives qualified home buyers more incentive to purchase energy-efficient and green-built homes,” said Dave Porter, senior vice president and division builder manager for Countrywide in a release.
“Concern for the environment and saving precious natural resources doesn’t have to conflict with buying a newly constructed home. Reduced interest rates, combined with the fact that most owners of green-built, energy-efficient homes pay lower monthly utility and water bills, make this program very attractive.”
The so-called “Countrywide Green Incentive Program” interest rate reduction only applies to newly constructed homes that meet third-party certified standards of green building programs, such as Energy Star or the National Association of Home Builder’s Green Building program.
The whole thing is rather amusing, considering the interest rate reduction is a mere eighth of a point, which you could probably just ask for and receive.
Not to mention the fact that borrowers who choose Countrywide are likely securing a higher interest rate than competing banks, so any benefit stemming from the loan program would likely be diminished.
Sounds like Countrywide is in need of some new purchase business, considering their purchase funding volume fell to just $6.1 billion last month, less than half the $12.6 billion funded a year earlier.