But in Philadelphia and other U.S. cities, studies have shown that if you live in a Black or Hispanic neighborhood, your home is more likely to be appraised below its market value when compared to homes in non-Hispanic white neighborhoods. This is called home appraisal bias. The appraisal is critical to securing a mortgage to purchase a home or to refinancing an existing mortgage. It can determine whether an applicant gets a mortgage and influence how much the mortgage costs. For example, if a borrower must take out a mortgage for more than 80% of a property's value, they may be required to pay for private mortgage insurance in some cases. Getting the appraisal value right is key to ensuring that homebuyers and those seeking to refinance a mortgage can do so under fair and equal conditions. We are two academics who study urban places and the people who live in them. Together, we have more than 80 years of experience working at federal civil rights agencies, teaching at research...
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