Video Transcript
If your mortgage application listed your race and said you were Asian, last year, you would've paid less money for your mortgage on average compared to people who said they were White or Black and African American. The data comes from Homebuyer.com's analysis of HMDA data. HMDA is a government report of every mortgage application made through a lender and, last year, the average origination fee, which is mortgage closing costs as a percentage of your loan size, it was lowest for people whose race was marked as Asian at 0.515%. The next lowest was for White people at 0.813%. Now that's almost 30 basis points more. That is a huge jump. Then came, in order, Native Hawaiian and Pacific Islander, followed by Black and African American. And, paying the most in origination fees, it was people who marked their race as American Indian or Alaska Native. Now, some of these differences, they can be explained by loan size. Mortgage costs are often fixed, so smaller loans make origination fees look proportionally large, but doesn't explain to all of the variance. If you're into mortgage data, we've got the complete set on the website. The link is in the description. Happy homebuying.
Study: What Race Pays The Most For A Mortgage?
A study by Homebuyer.com reveals that Asian mortgage applicants paid the lowest average origination fees at 0.515%, compared to 0.813% for White applicants and higher for others. American Indian or Alaska Native applicants faced the highest fees in the analysis of HMDA data.
Video Transcript
If your mortgage application listed your race and said you were Asian, last year, you would've paid less money for your mortgage on average compared to people who said they were White or Black and African American. The data comes from Homebuyer.com's analysis of HMDA data. HMDA is a government report of every mortgage application made through a lender and, last year, the average origination fee, which is mortgage closing costs as a percentage of your loan size, it was lowest for people whose race was marked as Asian at 0.515%. The next lowest was for White people at 0.813%. Now that's almost 30 basis points more. That is a huge jump. Then came, in order, Native Hawaiian and Pacific Islander, followed by Black and African American. And, paying the most in origination fees, it was people who marked their race as American Indian or Alaska Native. Now, some of these differences, they can be explained by loan size. Mortgage costs are often fixed, so smaller loans make origination fees look proportionally large, but doesn't explain to all of the variance. If you're into mortgage data, we've got the complete set on the website. The link is in the description. Happy homebuying.
