Lending rates are higher for minorities at all income levels
Even when accounting for income, Clayton’s in-house lending division, Vanderbilt Mortgage, offers loans to minorities that are costlier. The difference can amount to thousands of dollars.
AVERAGE INTEREST RATE ABOVE PRIME*
MINORITIES
7.22%
8%
6.73%
6.44%
6.09%
5.84%
WHITES
6.63%
6
6.04%
5.67%
5.36%
5.11%
4
2
0
$76,000-
100,000
>$100,000
$26,000-
50,000
$51,000-
75,000
INCOME:
< $25,000
*Federal data doesn’t show the borrower’s total interest rate, just the percentage points above prime. Prime rates for 24-year loans fluctuated between 3.41 and 5.2 over the period.
Source: Analysis of FFIEC data, 2010-14 GARLAND POTTS / THE SEATTLE TIMES