Black Americans pay more than any other group to own a home, a disparity that contributes to roughly half of the $130,000 retirement savings gap between Blacks and Whites, according to new study from MIT.
Black homeowners pay more in mortgage interest, mortgage insurance and property taxes than other homeowners, according to the paper by Edward Golding, executive director of the MIT Golub Center for Finance and Policy and co-authors, Michelle Aronowitz and Jung Hyun Choi.
Overall, the differences in mortgage interest payments amount to $743 a year, mortgage insurance premiums come to $550 a year and property taxes are about $390 per year. Together, this results in $67,320 in lost retirement savings for Black homeowners when invested over 30 years, according to the paper.
These inequities make it impossible for Black homeowners to build wealth through home ownership at the same rate as White