BLACK HOMEOWNERS PAY MUCH MORE THAN WHITES
BLACK HOMEOWNERS PAY MUCH MORE THAN WHITES: Homeownership is among the critical parts of producing generational wealth. Due to a history of racist policies– from the absence of access to lending opportunities for a mortgage to redlining districts– Black property owners face their own unique obstacles to securing a brand-new house. A research study carried out by the Massachusetts Institute of Technology (MIT), reveals new evidence that recommends that Blacks pay over $13,000 more for their houses compared to their white equivalents.
The MIT Study, The Unequal Costs of Black Homeownership, discovered that Black property owners pay higher home mortgage rates at origination, more in-home loan insurance premiums, and higher real estate tax.
The information reveals that interest charges for Black buyers on home purchase loans were $250 more a year leading to over $11,000 in lost retirement savings in contrast with their white equivalents. Also, because Black house owners have less access to budget-friendly refinancing options, Black property owners paid on average $475 more annually than white property owners resulting in practically $20,000 loss in retirement savings.
Additionally, the research study points out the greater real estate tax and the additional burden they put on Black homeowners that white locals do not face. “The authors identify large tax assessment locations and an appeal process that tends to benefit white homeowners as the predominant aspects leading to the greater relative property tax problem on Black homeowners,” the research study found. “They suggest that a smaller sized assessment location, one at the zip-code level, would lower racial inequality in property tax assessments by a minimum of 55-70%.”.
The research study likewise concluded that throughout periods of economic decline, Black homeowners were more likely to feel the impacts, unlike their white counterparts. “These capital standards have the effect of placing the burden of fending off a repeat of the 2008 Great Recession on Black house owners, even though Black homeowners were mostly the victims of the crisis, not its cause,” the study added.
“Nevertheless, the financial recovery has Black property owners paying more for their home mortgages since of the misbehaviors of loan providers and the failure of policymakers to stop bad loaning and avoid unneeded foreclosures.”.
855-832-8394
#sellmyhousefastforcash #sellmyhousewithoutrealtor