Women are 0.2 percent better at not missing their mortgage payments, when compared to men.
Realtor.com looked at a new study from the Urban Institute, which found that, when buying a home solo, women have a 5.8 default rate. Men have a 6.0 percent probability of default. Women pay higher interest rates than men (5.48 percent versus 5.41 percent).
The two basic reasons why women have higher interest rates is because they have more subprime loans, and their credit profiles aren’t as good. When anyone applies for a loan, the lender looks at a series of predictors to determine how likely that person is to default. And because default risk and mortgage rates go hand-in-hand, experts at the Urban Institute are saying assessments need to change because they’re not matching up.
