If you’ve found getting a mortgage to be a near-impossible task, there may be a reason: mortgage discrimination.
Researchers from Iowa State University’s Ivy College of Business have laid bare a painful but unsurprising truth: when they revealed that same-sex couples are 73% more likely to be denied a mortgage compared to their straight counterparts.
Even if you manage to secure a mortgage, you’ll likely find yourself paying more in fees. It may seem like a small amount — same-sex couples pay 0.2 percentage points more than straight couples — but that totals $8.6 million to $86 million nationwide in additional interest and fees. That’s even more shocking, given the study found no evidence that same-sex couples show a higher risk of default.
“Lenders can justify higher fees, if there is greater risk,” said Lei Gao, assistant professor of finance and co-author of the paper, in a news release. “We found nothing to indicate that’s the case. In fact, our findings weakly suggest same-sex borrowers may perform better.”