FinanceIntermediateDelaware Exam
What is a 'wraparound mortgage' in Delaware real estate?
AA second mortgage that wraps around the first mortgage, with the seller continuing to pay the first while collecting from the buyerCorrect
BA mortgage that covers multiple properties
CSimply a mortgage with broadly adjustable terms that automatically wrap around ongoing market rate changes, across most transactions
DA construction loan that wraps around the land loan
Why A second mortgage that wraps around the first mortgage, with the seller continuing to pay the first while collecting from the buyer Is Correct
Answer A: A second mortgage that wraps around the first mortgage, with the seller continuing to pay the first while collecting from the buyer
A wraparound mortgage allows a buyer to take out a new (larger) mortgage from the seller, which 'wraps around' the existing first mortgage. The seller collects the new payment and continues making the original mortgage payment.
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
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