Mortgages & Loans
In the mortgage process , what is a Wraparound mortgage ?
A Wraparound mortgage is a additional junior mortgage taken back by the seller for the amount of the property's purchase price less the buyer's down payment. The existing loan is retained and combined with a new, bigger loan and the interest rate is set between the old rate and the current market rate. A typical wraparound is an interest only loan with a five year balloon or less.
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