Wraparound Mortgages
Learn about the definition for this legal term.
What is Wraparound Mortgages?
A form of secondary financing that usually "wraps around" and exists with an older first mortgage with lower interest rates; lender assumes the developer's first mortgage and lends additional money and issues a junior mortgage for the total amount at a higher rate.
Further Reading
For more detailed information, see our related Security Transactions And Mortgages terms:
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