Wraparound Mortgage Financial Glossary
What is it? A second mortgage that takes over the first. The first mortgage loan is not paid off. Instead, the borrower makes payments to the second mortgage lender for the debt service of both the first and second liens. The second lien holder then makes the payments to the first lien holder. This type of mortgage is used when the borrower is unwilling or unable to refinance the first mortgage. Prepayment of the first mortgage may be prohibited or may be subject to high penalties. Alternatively, the first mortgage may have a very attractive fixed rate of interest. The wraparound arrangement permits the borrower to leave the first mortgage intact while giving more control to the lender willing to make the second mortgage.Finance Term Definition Added By: Hunter
The Wraparound Mortgage definition has been viewed 3389 Time(s)!
Send To Friends!
If you'd like to send the Wraparound Mortgage definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -We hope you now understand the meaning of Wraparound Mortgage. If you need any more information on this term, please don't hesitate to contact us.
Other Similar Finance Terms:
Financial Term par line is The parity price at which the yield of a mortgage-backed bond equals its net coupon rate. Because of the delay days, the par line is not 100 but instead is somewhat lower. Par line is not constant for different coupon rates at different delay days. However, it is not a function of prepayment speeds.Financial Term Collective Research is An SME special measure. Collective Research is a scheme where RTD performers undertake research activities on behalf of Industrial Associations or Groupings of SMEs
Financial Term MTA is (see Monthly Treasury Average)
Financial Term Council Tax surpluses/losses is The District Councils tax bases are calculated using estimated collection rates. Actual collection rates in a given year may give rise to a surplus/deficit to be taken into account when setting tax levels for the following year. Amounts in respect of Council Tax are shared between the District Council concerned, the County Council and the Police Authority pro-rata to the share of the aggregate of the precepts and demands on the collection fund. These surpluses and losses are applied to reduce or increase the spending of the authority.
Financial Term OpenEnd Credit is A line of credit that may be used over and over again, including credit cards, overdraft credit accounts, and home equity lines.