Rural families pay more on average for mortgage financing than do urban families. While the $2 million estimated annual efficiency cost is too low to justify policy action, the estimated $300 million of additional interest paid by rural borrowers presents an equity concern. Part the difference in interest rates may be due to inefficiencies in rural financial markets. Low-cost remedies improve secondary market access, promote Federal mortgage guarantees, or generally improve the delivery of mortgage-related information to borrowers and lenders.