Blacks Hispanics pay more for mortgages

And you thought only people with bad credit paid more for home loans… The article does not say if these two demographics on average have better or worse credit. Interesting read…

The Fed’s analysis of 2005 home lending data found that 54.7 percent of black borrowers paid a higher-than-typical interest rate on home mortgages. That was up sharply from 32.4 percent in 2004.For Hispanics, 46.1 percent paid more than typical for their mortgages last year — more than double the 20.3 percent reported in 2004.In contrast, only 17.2 percent of whites paid higher interest on their home mortgages last year. However, that was up considerably from 2004’s 8.7 percent.

And, some borrowers stretching to buy a home opted for creative
financing, like higher-priced piggyback loans. The use of piggyback
loans shot up more than 57 percent in 2005 from the prior year, the Fed
said.

“Indeed, the increase in the number of higher-priced piggyback loans
in 2005 accounted for more than half of the increase in the number of
all higher-priced loans,” the report said.

Blacks, Hispanics pay more for mortgages – Yahoo! News

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