Definition of wraparound mortgage in US English:

wraparound mortgage

noun

  • A second mortgage held by a lender who collects payments on it and the first mortgage from the borrower. The lender makes the payments to the original mortgage holder.

    • ‘Because the wraparound mortgage is for such a large amount, it keeps the buyer's down payment low - usually lower than it would be with a traditional mortgage.’
    • ‘The wraparound mortgage is a creative way to allow a buyer to purchase property without having to qualify for a loan or to pay closing costs.’
    • ‘To determine the amount of the wraparound mortgage, deduct your down payment from the purchase price.’
    • ‘It is also important to know that the lawmakers of the State of Texas have written laws regarding wraparound mortgages.’
    • ‘A common myth about wraparound mortgages is that you have to pay high interest rates to the financier.’
    • ‘We can provide you the funds you need quickly and purchase first, second and wraparound mortgages.’
    • ‘John pays $10,000 down and gives Beth a $90,000 note secured by a wraparound mortgage on the home.’
    • ‘Second, the face amount of the wraparound mortgage may be included in the contract price.’
    • ‘Mortgage tax will now be due and owing on the full amount of a wraparound mortgage made in New York City.’
    • ‘With adjustable rate mortgages, fixed rate mortgages, wraparound mortgages, reverse mortgages, interest only mortgages, etc., you will need someone who knows what they're doing to help you choose the right loan for your financial situation.’
    • ‘I agree to sell you the house with a wraparound mortgage of $90,000 at 7 percent interest for 30 years.’
    • ‘The seller-financed wraparound mortgage is possibly the most complex home purchase scam.’
    • ‘The holder of the wraparound mortgage then forwards the appropriate amount to the holder of the first mortgage.’
    • ‘This one is where you invest in the mortgages of real estate instead of the real estate itself - financing second trusts, purchasing mortgages at a discount, wraparound mortgages, etc.’
    • ‘If the property seller still owes money on the home, a wraparound mortgage is a way to finance the purchase without going through a lender.’