Black and Hispanic Home Buyers Pay Higher Interest on Mortgages, Study Finds

[Mr. Big Dog 10,747]

Clearly, I have been in the US way too long

Absolutely! They'll harrass you even more at the airport in India next time.

[Artegal 1]

Well, you get 10 - 15% off that days purchaces.. thats why people end up with them.. e.g. Go into sears and buy a lawn tractor.. you whip out your nice 10% no fee Visa card.. they offer you 15% off today, just sign up for their card.. Hard to avoid it almost at that point.

As far as this Blacks and Hispanics charged more deal.. I would suspect part of it is they dont shop as well. When getting a mortgage, one has to negotiate fairly hard and pit bank against broker to get the best rates. Even after an exhaustive period of research, some moop in the cube next to you will get 1/4 point better cause his mom knows someone or whatever.

I notice also that the survey didnt seem to mention residency status. That may be part of it as well. Lenders for undocumented immigrants tend to charge a little more.

Yeah I was thinking the same thing that maybe Blacks and Hispanics do not shop around as much. I know I flat rejected 6 mortgage offers before I got a fixed 5% for 30 years with no-money down, and I have terrible credit. BTW I am sometimes consider white, but I often list myself as biracial, multiracial, other, miscellaneous, and Hispanic. I am listed as other on my voter registration card--and recently I recieved a letter from the election board asking me to clarify my race--yeah let me put human or better yet can you wait for the DNA analysis to get back--I mean I am not exactly one of Hitler's youth. Maybe I will put egg-shell as my race next time--but in the summer I would be more glazed-buttercream

Also was this study objective?

The story says that "The findings were endorsed by representatives of the National Association for the Advancement of Colored People and the National Council for La Raza." Does that mean that these organizations that support the Black and Hispanic viewpoint actually sponsored this report? Or do they just aggree with it?

I would like to see a very objective study done--it can't all be racism as many of my mortgage lenders were people of color--so.

[incanada1234 0]

I guess I don't get it. When I was shopping for my house, I got quotes online from lendingtree.com and I got quotes from a few local banks. How does race get factored into this?

It doesn't. The NYT just thrives on White Guilt.

[Sister Fracas 5]

I want a samosa...

How far do you have to drive to get one?

an hour-to either Tampa or Clearwater

dang it...how did I miss out on the samosas??? I can walk 5 minutes to get one!!!

Edited June 6, 2006 by Frances

[LaL 418]

Well... it is possible that the average black/Hispanic buyer has a lower credit score than your average white buyer. That lower average might account for higher average rates.

i know we are a loong way off from the topic now, but wanted to add in here - the 1st line of the article says the credit rating is around the same

Black and Hispanic home buyers entering the fast-growing market for subprime mortgages tend to pay higher interest rates than whites with similar credit ratings, a statistical study by an advocacy group says.

also regarding Sears - when I was 18, that was the only credit card I could obtain. I have always kept it open and periodically used it and paid it off. Its now my longest revolving account, therefore creating a long, positive credit history. What is GREAT about it, is while I NEVER use it to buy anything, i do TRANSFER all balances onto this credit card to take advantage of the 1.99% APR (for life of loan). SO... they get the measly 1.99% on purchases I made to other accounts. More than a fair deal I have to say.

[Fischkoepfin 1]

So, if the only reason black and Hispanics pay higher interest rates is because they don't shop around why then has the issue been studied in depth by sociologists and political scientists who agree that there is a racial pattern? I know that some of you do not like to acknowledge continuing racist patterns in society, but to pretend that the scholars conducting these studies haven't come up with the most obvious solution or that this is just another piece of liberal propaganda/white guilt pushing doesn't really disprove or discredit the claims of the study.

[cmartyn 0]

Whoa!

Nobody said any such thing. And besides, Sociologists are not all that objective. Its not a real science anyway. Its like having a degree in education. No big deal.

They start out basically assuming that the patterns of behaviour will repeat all else being equal.

Given that this means that men tend to be more mechanichaly inclined to overcome their lack of a uterus, I tend not to give a whole whack of weight to their objectivity.

[w¡n9Nµ7 §£@¥€r 123]

Haha. Everyone I knew in college who graduated with a degree in Sociology and Poli Sci did it because they didn't want to work hard. Those are disciplines for lazy people.

[Fischkoepfin 1]

Whoa!

Nobody said any such thing. And besides, Sociologists are not all that objective. Its not a real science anyway. Its like having a degree in education. No big deal.

They start out basically assuming that the patterns of behaviour will repeat all else being equal.

Given that this means that men tend to be more mechanichaly inclined to overcome their lack of a uterus, I tend not to give a whole whack of weight to their objectivity.

Haha. Everyone I knew in college who graduated with a degree in Sociology and Poli Sci did it because they didn't want to work hard. Those are disciplines for lazy people.

So, now it's "discredit sociologist time"? Because they are lazy and it's not a real science, they must be wrong? I'm not a big fan of Sociology or Political Science either, but from what I've read and seen they do spent significant amounts of time analyzing data, conducting interviews, etc.

Btw, science isn't objective, whether hard or soft. But that's beside the point.

[Elizabethnhenry 0]

Well... it is possible that the average black/Hispanic buyer has a lower credit score than your average white buyer. That lower average might account for higher average rates.

i know we are a loong way off from the topic now, but wanted to add in here - the 1st line of the article says the credit rating is around the same

Black and Hispanic home buyers entering the fast-growing market for subprime mortgages tend to pay higher interest rates than whites with similar credit ratings, a statistical study by an advocacy group says.

Thank you, O ye without glaucoma!

[cmartyn 0]

Ok, I see where your coming from.... Trouble is though, the Hubbell is pointing in the wrong direction this month.

What I am saying is that it is easy to create a study to support the viewpoint that the mortgage industry is using discriminatory practices when more likely they are just taking advantage of folks who are not so savvy with finances.

Not so hard to imagine.. For me at least.

[almaty 19]

Haha. Everyone I knew in college who graduated with a degree in Sociology and Poli Sci did it because they didn't want to work hard. Those are disciplines for lazy people.

you chop..i got an bachelor in sociology..cause i was a communist,....

[Mr. Big Dog 10,747]

Everyone I knew in college who graduated with a degree in Sociology and Poli Sci did it because they didn't want to work hard. Those are disciplines for lazy people.

As a Poli Sci, I'm afraid I have to admit that you're right. In general, that is. I did it out of idealism but there were a heck of a lot of lazy folks around there.

[Elizabethnhenry 0]

Everyone I knew in college who graduated with a degree in Sociology and Poli Sci did it because they didn't want to work hard. Those are disciplines for lazy people.

As a Poli Sci, I'm afraid I have to admit that you're right. In general, that is. I did it out of idealism but there were a heck of a lot of lazy folks around there.

And that's why I switched from Poli Sci to German Language and Literature.

[chri'stina 190]

Haha. Everyone I knew in college who graduated with a degree in Sociology and Poli Sci did it because they didn't want to work hard. Those are disciplines for lazy people.

woahhhhh wait a minute, no he diddddn't. Sociology degree holder here. (I almost majored in Biology but found Sociology more interesting). Thems fightin words...