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Saturday, October 17, 2020

Blacks Pay More

An excerpt from Complex -

Study Shows Black Americans Are Paying More to Own Homes

BYJOE PRICE

In a new study from MIT, it has been reported that Black Americans are often forced to pay more than any other group of individuals to own a home.

CNN reports that Black homeowners on average pay more in mortgage interest, mortgage insurance, and property taxes than other homeowners. Written by Edward Golding, MIT's executive director of the Golub Center for Finance and Policy, the paper concludes that the vast difference between what Black homeowners and white homeowners pay indicates that it's considerably more difficult for Black homeowners to accumulate wealth through ownership at the same rate as white homeowners. 

The differences between mortgage payments is $743 per year, mortgage insurance premiums $550 per year, and property taxes at $390 per year. Totaling $13,464 "over the life of the line," the gap could result in up to $67,320 in lost retirement savings. 

"The small differences compounding over the life of the mortgage and during home ownership can add up," writes Golding. "Even if it is a few hundred dollars a year here and there, it can amount to another year's salary families would otherwise have." 

https://www.complex.com/life/2020/10/black-americans-pay-more-to-own-homes-study-shows

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