HomeDefinitionsCompareDebt Wraparound mortgageThe financial definition for Wraparound mortgage:A second mortgage that leaves the original mortgage in force. The wraparound mortgage is held by the lending institution as security for the total mortgage debt. The borrower makes payments on both loans to the wraparound lender, which in turn makes payments on the original senior mortgage. Similar MatchesWraparoundWraparoundA financing device that permits an existing loan to be refinanced and new money to be advanced at an interest rate between the rate charged on the old loan and the current market interest rate. The creditor combines or "wraps" the remainder of the old loan with the new loan at the intermediate rate. Wraparound annuityWraparound annuityAn investment that allows the annuitant the choice of underlying investments tax-deferred. Click to compare definitions of Wraparound mortgage Click to view definitions beginning wr |