Wrap around mortgage
Definition
A mortgage on a property that already has a mortgage, where the new lender assumes the payment obligation on the old mortgage. Wrap-around mortgages arise when the current market rate is above the rate on the existing mortgage, and home sellers are frequently the lender. A due-on-sale clause prevents a wrap-around mortgage in connection with sale of a property except by violating the clause. See What Is a Wrap-Around Mortgage?
Related Terms Other terms related to 'Wrap around mortgage' starting with the letter 'W' Worst case scenario, Wholesale lender, Waive escrows, Workout assumption Browse by Letter » 1 4 A B C D E F G H I J L M N O P Q R S T U V W Y | 