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Black Americans Pay More For Homes Than Any Other Group: Study Finds

A new study from MIT has found that Black Americans pay more for homeownership than any other group.

Black Americans, HomeownershipJoe Raedle / Getty Images

The study, conducted by Edward Golding, executive director of the MIT Golub Center for Finance and Policy, reports that Black Americans pay more for mortgage interest, mortgage insurance, and property taxes than other homeowners.

The disparities are as follows: $743 per year in mortgage interest payments, $550 a year mortgage insurance premiums, and$390 per year in property taxes. All-in-all this accounts for a $67,320 loss in retirement savings for Black homeowners over 30 years.

“The small differences compounding over the life of the mortgage and during homeownership can add up,” writes Golding. “Even if it is a few hundred dollars a year here and there, it can amount to another year’s salary families would otherwise have.”

“While mortgage costs are determined by markets to some extent,” said Golding, “there is a great deal of public policy that influences these rates, especially as it impacts people of color. We can and should address these issues at a policy level and start now to eliminate the large wealth gap between Black and White homeowners that we created in part through our current mortgage system.”

Check out the paper for yourself here.

[Via]

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Study Shows Black Americans Are Paying More to Own Homes

In a new study from MIT, it has been reported that Black Americans are often forced to pay more than any other group of individuals to own a home.

CNN reports that Black homeowners on average pay more in mortgage interest, mortgage insurance, and property taxes than other homeowners. Written by Edward Golding, MIT’s executive director of the Golub Center for Finance and Policy, the paper concludes that the vast difference between what Black homeowners and white homeowners pay indicates that it’s considerably more difficult for Black homeowners to accumulate wealth through ownership at the same rate as white homeowners. 

The differences between mortgage payments is $743 per year, mortgage insurance premiums $550 per year, and property taxes at $390 per year. Totaling $13,464 “over the life of the line,” the gap could result in up to $67,320 in lost retirement savings. 

“The small differences compounding over the life of the mortgage and during home ownership can add up,” writes Golding. “Even if it is a few hundred dollars a year here and there, it can amount to another year’s salary families would otherwise have.”

Golding added that the “Black-white income gap of $25,800 is exacerbated by this ‘Black tax’ on homeownership.” The study also indicates that Black households aren’t getting as many opportunities to refinance their mortgages to lower rates, which has resulted in many Black households paying a further $475 per year more than white households.

“Nearly a quarter of the disparity in homeownership costs for Black homeowners is due to local property tax assessments,” the paper reads. “A fair homeownership system must reform these inequitable federal, state, and local policies.”  

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CT gets $400K grant to study improvements to Metro-North lines


Connecticut has received a $400,000 federal grant to study the financing of improvements to Metro-North Railroad’s Danbury and New Canaan lines, officials announced Thursday.

The Department of Transportation-funded study aims to determine whether a “regional value capture mechanism,” such as a Tax Increment Financing district or comparable structure, can be used on a regional, multi-jurisdictional level to generate the funds required to support improvements along those branch lines.


A range of options, including the potential extension of Metro-North service to towns such as Brookfield and New Milford, will be considered as part of the project.

“Improving Metro-North is essential for our economy and our environment,” said Congressman Jim Himes, a Democrat whose district covers most of Fairfield County, said in a statement. “Without efficient public transportation, job creation is hindered and

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Blacks still pay more than others for home ownership – MIT study

FILE PHOTO: A residential building construction site is seen, amid the outbreak of the coronavirus disease (COVID-19), in Detroit, Michigan, U.S., April 28, 2020. REUTERS/Rebecca Cook

NEW YORK (Reuters) – African Americans still pay more than any other group to own a home, a disparity that over 30 years contributes to roughly half the current $130,000 gap between Blacks and whites in savings at retirement, a recent Massachusetts Institute of Technology shows.

The annual difference of $743 in mortgage interest payments, $550 in mortgage insurance premiums and $390 in property taxes, when invested over 30 years results in lost retirement savings of $67,320 for Black homeowners, according to the study called “The Unequal Costs of Black Homeownership.”

These inequities make it impossible for black households to build housing wealth at the same rate as white households, said the study, whose lead author, Edward Golding, is executive director of the MIT Golub Center for Finance and Policy.

Black homeowners on average have lower credit scores and lower down payments, largely rooted in past discriminatory policies and practices, making them disproportionately disadvantaged by risk-based pricing, the study found.

Golding, a former head of the Federal Housing Administration, said in a statement that “mortgages costs are determined by markets to some extent,” but “there is a great deal of public policy that influences these rates especially as it impacts people of color.”

Reporting by Herbert Lash; Editing by Alden Bentley and David Gregorio

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Study finds Lake Erie, Detroit River improvements but cites threats

A lot in the water and shoreline of the Detroit River and western Lake Erie is much more environmentally sound than a generation or two ago, but new threats to the ecosystem are approaching tipping points, according to a 500-page, two-year study to be released Tuesday by an array of concerned officials and private citizens from the United States and Canada.

“Checkup: Assessing Ecosystem Health of the Detroit River and Western Lake Erie,” the 11th annual “State of the Strait” report, calls for new attention and remedial action to secure a healthful future.

“We’ve seen some really amazing ecological revivals of the Detroit River,” said John Hartig, a conservationist who helped prepare the international report, sponsored by companies, nonprofit groups, philanthropy and other sources.

“There were no bald eagles, 30 years ago, peregrine falcons, osprey, lake sturgeon or lake white fish spawning in the Detroit River. Mayflies weren’t around, and beaver weren’t here.

“But they are all back,” said Hartig, a visiting scholar at the Great Lakes Institute for Environmental Research and a member of the board of directors of the Detroit Riverfront Conservancy.

“Lake Erie is the same way. The bad news is we have some major problems, a series of problems, eight of which are documented in the report,” he said.

Climate change, pollution and nutrient-rich runoff from the land, algae blooms, toxic contamination, invasive species, habitat loss and degradation, urban sprawl and environmental justice are all pressing issues, according to the

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