Wrap Around Mortgage

Business / Debt / Wrap Around Mortgage: A second or junior mortgage with a face value of both the amount it secures and the balance due under the first mortgage. The mortgagee under the wrap-around collects a payment based on its face value and then pays the first mortgagee. It is most effective when the first has a lower interest rate than the second, since the mortgagee under the wrap-around gains the difference between the interest rates, or the mortgagor under the wrap-around may obtain a lower rate then if refinancing.

Other Words for Around

Around Adverb Synonyms: about, approximately, nearly, almost, roughly, circa
Around Preposition Synonyms: round, about, surrounding, encompassing, enveloping, encircling, on all sides of, in all directions from, enclosing
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Other Words for Wrap

Wrap Verb Synonyms: stole, shawl, mantle, poncho, serape, cloak, cape
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Multiclass Mortgage Securities

Business / Real Estate / Multiclass Mortgage Securities: Short- and long-term mortgage securities, with or without pass-through privileges. MORE

Mutual Mortgage Insurance

Business / Real Estate / Mutual Mortgage Insurance: Insurance premiums and other specified FHA revenues are paid into one of four FHA funds. Losses due to foreclosure are met from these funds. MORE

Open End Mortgage

Business / Debt / Open End Mortgage: A mortgage permitting the mortgagor to borrow additional money under the same mortgage, with certain conditions, usually as to the assets of the mortgage. MORE

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