Subprime targeting simultaneously shrinks black home equity and their mortgage interest deductions

Evidence

White Americans are far less likely (26 percent) than black (53 percent) and Latinx (47 percent) Americans to have subprime mortgages. And even though higher interest rates may mean higher mortgage interest deductions, those come at the expense of building equity, as the higher interest payments mean homebuyers are reducing their principal very slowly—if at all. — Dorothy A. Brown, The Whiteness of Wealth, 223

Categorization

• XREF: The deduction irony connects forward to the mortgage interest deduction chapters that likely anchor the book’s tax-code argument.