Wraparound Mortgages

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:

• Variable Rate Mortgage
• Annual Percentage Rate
• Mortgage Refinance
• Mortgage Financing from Seller
• Termination Statement

Reviewed by

Stephanie Bagnall

Licensed Attorney and Legal Researcher

Stephanie Bagnall is a Georgia-licensed attorney and legal researcher with experience in accessibility law, compliance, employment law, and legal writing. She helps develop and review BarPrepHero's Legal Terms content for clarity, accuracy, and usefulness to bar exam students.

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