Wouldn’t you think this kind of bias was over?
In the USA today, according to the National Assoc of Women Business Owners, 12.3 MILLION women own businesses, representing about 40% of businesses: that is roughly 4 out of every 10 businesses are women-owned! Here’s an impressive statistic: They are generating over 1.8 TRILLION per year!
So why are lenders out there charging a woman a higher interest rate on her mortgage than a man?
Fundera.com reports that “Men receive an average loan size of $43916, while women receive an average size loan of $38,942….just under $5000 LESS!”
Now that’s just crazy!
We need to call out lenders on this one ladies!
There might have been a basis for reluctance to provide loans to women 30 years ago, but not in today’s world. Women-owned businesses added a half a million jobs between 1997 and 2007.
We’ve come a long way baby…but we’ve got farther to go especially when it comes to getting a mortgage.
Does your state charge women higher interest rates? Your state may have something to do with your mortgage:
According to the report, fifteen (15) US states are charging women more than men for mortgages. Those states include Mississippi, Alabama, Ohio, Florida, and New Jersey where women are charged at least $5,500 more than men.
As an example:
Tennessee women will pay over $5,000 more over the life of their mortgage.
• Women’s interest rate: 3.39%
• Men’s interest rate: 3.32%
• Difference in interest paid over the mortgage’s term: $5,071.
Homes in Arkansas will cost women more than $5,300 more.
• Women’s interest rate: 3.41%
• Men’s interest rate: 3.33%
• Difference in interest paid over the mortgage’s term: $5,359.
According to the NAR 2020 Profile of Home Buyers and Sellers , single, female buyers accounted for 19% of the homes purchased in 2020. 19% of first-time home buyers and 17% of repeat home buyers were single women, while 11% of first-time home buyers and 9% of repeat buyers were single men.
Women and Home buying:
Single women make up the second largest group of homebuyers only after married couples, according to the National Association of Realtors. In fact, last year nearly one-fifth of homebuyers were single females 14, 2020.
More you should know:
According to the 2020 Profile of Home Buyers and Sellers , single, female buyers accounted for 19% of the homes purchased in 2020. 19% of first-time home buyers and 17% of repeat home buyers were single women, while 11% of first-time home buyers and 9% of repeat buyers were single men.
Single women own more homes than single men:
In total, single women own nearly 1.6 million more homes than single men do in America’s 50 largest metros. Single women own about 5.2 million homes, while single men own about 3.6 million homes. There isn’t a single metro among the largest 50 where single men own more homes than single women.
Single Women Minorities & Homebuying use Digital Mortgage Lenders
Studies show that digital, algorithm-based mortgage solutions discriminate less than more traditional lending models (about 40% less, in fact), ultimately enabling more approvals of minorities, as well as lower loan costs for those borrowers as well. New data released this morning supports these findings even further.
According to a report released by Compass and digital mortgage lender Better.com, the company has seen a massive uptick in single female homebuyers using its algorithm-based lending platform. Over the last year, the number of single, minority female borrowers have increased 500%, while the number of single women borrowers in the 30-to-40 age range jumped 450%.
In closing…What are we going to do about it?
Let’s get the word out to double check our own mortgage rates and help others do the same. Equality should be the norm for all people who seek to invest in the American Dream.
Women pay more for mortgages
What Women Need To Know About Getting a Mortgage:
Women Owned Business Statistics