How Multifamily Properties can Save by Going Green via Property Management Insider

Going green can save some real bucks now for apartments, and more than just on energy bills

Developers and investors will be able to cash in when financing multifamily properties that have a green building certification. In February, Fannie Mae announced that it will give discounts on interest rates if the buildings have an energy stamp of approval.

A 10-basis-point reduction in the interest rate of a multifamily refinance, acquisition or supplemental mortgage loan will be automatic for an energy efficient-certified property, according to Fannie Mae. That means, for example, that interest on a market rate loan of 4 percent will drop to 3.9 percent. On a $10 million loan amortized over 30 years, that’s a savings of $95,000, says Fannie Mae.

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