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Study: Women pay higher mortgage rates than men in all but one state

According to mortgage technology company Own Up, only one state in the United States offers women, on average, lower interest rates than men on a 30-year fixed-rate mortgage.

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The fight for women’s equality may seem like a battle of days gone by, but data from mortgage technology firm Own Up suggests women are still discriminated against when it comes to home finance.

“There are roughly 7.4 million more women than men in the US, but when it comes to home ownership, many women stay on the sidelines,” a report from Own Up to Inman said. “While single women own around 1.5 million more homes than single men in America’s 50 largest metropolitan areas, women still face significant discrimination when it comes to home financing.”

Using data available on the Home Mortgage Disclosure Act (HMDA) database of all loans distributed in 2019 (the most recent data available), Own Up compared the median interest rate by gender and state for a 30 year fixed rate loan below the Assuming an average loan size of $ 354,000 for a single family home and a base rate of 3 percent. As of 2019, a total of 2.7 million women acquired loans and a total of 5.8 million men acquired loans for this data pool.

Own Up relied only on data that indicated the gender of a loan applicant as either male or female and examined all applications that either did not provide this information, listed both male and female, or did not respond. The data was not checked for marital status.

Of all 50 states, only Alaska gave women mortgage rates lower than men. In that state, women received an average mortgage rate of 3.21 percent versus 3.23 percent for men.

That means the average woman in Alaska will save $ 1,656 more over the life of that particular loan than the average man with the same loan size.

This data assumes an average loan size of $ 354,000 and a base rate of 3% Credit: Own Up

At the other end of the spectrum, the average Mississippi woman has the largest differences in mortgage rates compared to the average state man. In this southern state, women pay an average of 3.47 percent versus 3.37 percent their male counterparts pay.

Over the life of a 30-year fixed-rate loan of $ 354,000, it costs women in the state $ 7,077 more than men.

This data assumes an average loan size of $ 354,000 and a base rate of 3% Credit: Own Up

How can women fight inequality? Own Up says they may have to shop a little more than men to find these competitive rates on their home loan.

“A lot of borrowers just don’t look for the best interest rate possible, which means they’ll lose thousands of dollars over the life of their loan,” the Own Up report said. “This [2018] A study by Freddie Mac confirms that in the long run, not shopping will cost all consumers significant money. However, women are often the hardest hit. “

However, the company, whose proprietary technology is helping home buyers buy a variety of mortgages, also noted that the burden of getting better mortgage rates shouldn’t rest on women alone.

“We have to get in touch and speak to the elephant in the room,” said the Own Up report. “The HMDA data doesn’t lie. As an industry, it is imperative that women of all ages and backgrounds have fair and equal access to the best technology, home advisors and support so that regardless of their financial situation, they can quickly compare interest rates and get the best possible deal on their mortgage. ”

Email Lillian Dickerson


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