New studies show that, besides the well-publicized gender pay gap, there are also gender discrepancies when it comes to getting a mortgage. Figures revealed by the Urban Institute show that despite women often being better at paying their loans, they can be stuck with higher payments for mortgages, and are unable to gain approval for the most competitive interest rates.
As part of the study, the Urban Institute found that 15.6 percent of female homeowners had higher-priced mortgages. These loans have higher interest rates than the Average Prime Offer Rates, which stood at 3.58 percent, as of June 20, 2016. In comparison, only 15 percent of men are on these rates. Also, just 7.6 percent of female-male joint applications are placed on higher-price mortgages.
The result is that single women often have to pay more for their home loan. Lower income levels might contribute towards this issue, with the Urban Institute suggesting the average income for a single man is $94,700 compared with $69,200 for a woman. The mean income for a male-female duo is $119,000.
Considering these findings, women must arm themselves with the correct tools and data when applying for a mortgage without a male counterpart. For example, having a strong credit score of at least 740 is essential to get low rates. Monthly expenses, including new mortgage repayments, also need to be 43 percent of income at most if women are to access the cheapest available home loan rates.