Just how Complicated can we make things???
There is a new bill in Congress, titled the SAVE (Sensible Accounting to Value Energy) Act, being considered that would require appraisers and loan underwriters to assess the economic impact of energy costs in calculating a homes value or underwriting the costs of home ownership when making a loan.
The new rule would be effective for any new loan made by the Federal National Mortgage Assoc. ( Fannie Mae ), The Federal Home Loan Mortgage Corporation ( Fredie Mac ) or the Government National Mortgage Association ( GNMA) .
For houses with significant energy-efficiency improvements already built in and documented with a professional audit such as a home energy rating system study, lenders would instruct appraisers to calculate the net present value of monthly energy savings — i.e., what that stream of future savings is worth today in terms of market price — and adjust the final appraised value accordingly. This higher valuation, in turn, could be used to justify a higher mortgage amount. This is estimated that it could have an affect in increasing a homes value of up to $10,000.
Since appraisals are so subjective in nature anyway, this whole approach seems to me to be a total , and expensive, waste of time .
For the full article, see http://www.latimes.com/business/realestate/la-fi-harney-20111030,0,6407654.story
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