Do woman pay more for mortgages? If so, why?
The short answer to whether women actually pay more for mortgages is yes, in many cases they do. Women are better budgeters and carry less debt than men, and they certainly hold positions in the work force that are equal to or above many men. So, why do they pay more for mortgages?
Possible reasons Every situation is different, but some of the reasons that women pay more for mortgages has to do with their own personalities and characteristics than it does lenders being unnecessarily hard on them. There was a study conducted that found many women will end up signing a mortgage agreement that isn’t ideal to their lifestyle or financial situation. Men, on the other hand, will take longer to shop around, looking for a mortgage solution that works best for them. And it isn’t because men are any smarter than women, it’s because they tend to gravitate toward lenders they like personally, even if the overall deal isn’t as good. Basically, they may sign with a lender they feel comfortable with or feel good about, even if they don’t offer the best rates. Women will also sign on with a lender that was recommended by a friend or family member, rather than throw loyalty aside and just go for the best rates.
Possible solutions For women to get deals that are on par with what men get, it’s important for them to ask for what they want. Quite often, asking for a better rate will result in a better rate, and women are more reluctant to ask. It’s important to keep in mind that lenders negotiate all the time, and prospective homeowners ask for better rates all the time. You won’t be offending anyone or ruining your chances at a good deal by asking.
Find a broker Whether you’re male or female, seeking out a mortgage broker to help with your deal can often get better rates than you’d ever get looking on your own. This is especially true if you’re shy or don’t feel comfortable shopping around and asking for lower rates. Mortgage brokers have access to several different lenders, and they are definitely searching for the best deal on your behalf. They are obligated to use specific products or services, and they can take a lot of the pressure off you during the search. There’s no reason for a woman to pay more for a mortgage, and a good broker can help make it happen.
Author Bio: Jonathan Baker is working as a consultant for finance and education at Ontario. He stays updated about the latest news and trends in finance world and shares his insights through his blogs. You can follow him on twitter.