Definition of wraparound mortgage in English:
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.
- John pays $10,000 down and gives Beth a $90,000 note secured by a wraparound mortgage on the home.
- A common myth about wraparound mortgages is that you have to pay high interest rates to the financier.
- Mortgage tax will now be due and owing on the full amount of a wraparound mortgage made in New York City.