FILE PHOTO: A residential building construction site is seen during the coronavirus disease (COVID-19) outbreak in Detroit, Michigan, United States, on April 28, 2020. REUTERS / Rebecca Cook
October 7, 2020
NEW YORK (Reuters) – African Americans still pay more than any other group to own a home. This inequality accounts for half of the current $ 130,000 gap between blacks and whites in retirement savings over 30 years, a recent Massachusetts Institute of Technology shows.
The annual difference of $ 743 in mortgage interest payments, $ 550 in mortgage insurance premiums, and $ 390 in property taxes for a 30-year investment results in a $ 67,320 loss in retirement assets for black homeowners, according to the study entitled “The Unequal Cost of Black Homeownership.” . ”
These inequalities make it impossible for black households to own the same rate as white households, said the study, lead author Edward Golding is the executive director of the MIT Golub Center for Finance and Policy.
Black homeowners, on average, have lower credit scores and lower down payments, largely due to past discriminatory policies and practices that put them disproportionately at a disadvantage through risk-based pricing, the study found.
Golding, a former federal housing manager, said in a statement that “the cost of mortgage is to some extent driven by the markets,” but “there is great public policy that affects these interest rates, especially as it affects people of color. ”
(Reporting by Herbert Lash; Editing by Alden Bentley and David Gregorio)
This article originally appeared on www.oann.com