Native Americans Are Paying More For Mortgages
Native Americans living on reservations are paying average mortgage rates at almost two percentage points higher than non-Native Americans living outside of reservations, according to a report from the StarTribune.
In a study conducted by the Federal Reserve Bank of Minneapolis' Center for Indian Country Development, it was found that Native American families who are purchasing a home could pay up to $107,000 more than a non-Native American families over the course of a 30-year loan for a home that costs $140,000.
"Almost 30 percent of loans made to American Indian and Alaska Natives for reservation properties were higher cost—that is, costing more in interest rates than those available to non- Indians," according to the report.
"Only 10 percent of loans in the same time period made to non-Native borrowers for properties near reservations were higher cost; thus, three times the proportion of Native borrowers faced higher-cost loans than did non-Indian borrowers."
The report shows that there is a clear need to make borrowing equally affordable to Native American borrowers who are receiving higher rates on their mortgages.
To learn more about this report and some of the staggering details behind the disparity in affordability for Native Americans looking to purchase a home on a reservation, click on the image above.
