Minneapolis-based U.S. Bank pilots a low-cost 'green' home-equity loan

Finance and Commerce Staff Report

Minneapolis-based U.S. Bank is testing a new home-equity loan and line of credit program in Colorado that offers customers a three-eighths percent rate reduction for qualified "green" home improvement projects.

The program will finance improvements that reduce energy use through the addition of insulation, or highly efficient windows, doors, roofing, heating, ventilation, air conditioning, or water heating systems. The program will also fund the installation of renewable home energy sources such as biomass stoves, ground source heat pumps, solar energy systems, small wind energy systems and fuel cells.

In addition to qualifying for a reduced rate loan or line, many of these home improvement projects may qualify for tax credits.

The reduced-cost loans are expected to eventually expand to other U.S. Bank markets.