Wraparound Mortgage
Content
Definition
A Wraparound Mortgage is a form of secondary financing for the purchase of real property where the new mortgage is inclusive of the existing mortgage, offering a unique financing solution that can benefit both buyers and sellers in specific scenarios.
Usage and Context
A wraparound mortgage is a secondary loan where a new mortgage includes the existing one, providing a unique solution for buyers and sellers.
Frequently asked questions
- What is a wrap-around mortgage in real estate? A wrap-around mortgage is a financing type where the new mortgage includes the existing one, allowing the buyer to make one payment that the seller uses to pay the original mortgage.
- Which of the following describes a wrap-around mortgage? A wrap-around mortgage is a financing arrangement where the new mortgage includes the existing mortgage, allowing for one combined payment.
- What is a wraparound in finance? A wraparound in finance is a loan that includes the balance of an existing loan along with extra financing, usually in real estate.
Benefits
A wraparound mortgage provides a unique financing solution by combining an existing mortgage with a new one.
Conclusion
A wraparound mortgage combines an existing mortgage with a new one, offering a unique financing option.
