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Study Shows Energy Star Homes Less Likely To Default

energy star homes less likely to default on mortgageIf you live in an Energy Star home or you’re in the market for one, there are definitely some benefits that come with owning one. They have great insulation. Their windows come with protective coatings that block ultraviolet sun rays. Their energy-efficient central air systems are quieter while reducing the levels of humidity within the home. They also come with appliances that are Energy Star certified; many of which use 50-60 percent less electricity than other standard models. Plus, there’s the added bonus of the fact that all of these things combined can save homeowners an average of $200-400 in utility bills annually.

Perhaps that’s a big part of the reason why a study that was recently released by the University of North Carolina – Center for Community Capital reveals that another benefit of having an Energy Star home is that it is much less likely to default than other ones. How much less likely? A whopping 32 percent, to be exact.

This data was released after approximately 71,000 Energy Star single-family homes were compared to similar homes that do not have that certification. What was discovered was that no matter where the homes were located, the value of the house or the loaner’s credit history (among other criteria), consistently, across the board, Energy Star homes did not go into default nearly as much. Another interesting fact that was also published in the study is that the more energy efficient an Energy Star house proved to be, the lower the risk of default became.

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