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wraparound mortgage

Syllabification: wrap·a·round mort·gage

Definition of wraparound mortgage in English:

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.
Example sentences
  • 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.

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