Mortgage & Commercial Lending News.

Houston's premier blog for all things related to Commercial and Residential Hard Money Loans.

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How Wraparound Mortgages and Hard Money Loans come together.

Posted by Jim Emerson

Mar 2, 2017 12:00:00 PM

 You may or may not heard of this term  before but a wraparound mortgage     or “wrap” is a form of secondary  financing for the purchase of real  property.  The seller/lender extends to  the buyer a junior mortgage which  wraps around and existing mortgage,  typically the bank or the seller of the  real property assumes the payment of  the existing mortgage and provides the borrower with a new larger loan, usually at a higher interest rate.

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Topics: Hard Money, Hard Money Loans, hard money lenders, wraparound mortgages