Finance
A wraparound mortgage is one in which:
AMultiple lenders share in one mortgage lien
BA new (junior) mortgage 'wraps around' an existing (senior) mortgage, with the seller collecting a combined payment and continuing to make payments on the original loan✓ Correct
CA mortgage covers multiple properties owned by the same borrower
DThe interest rate adjusts upward but never downward
Explanation
A wraparound mortgage is a form of seller financing where the seller creates a new junior mortgage that includes the existing underlying mortgage balance plus additional equity. The buyer makes one payment to the seller, who continues to pay the original lender. The seller profits from the spread between interest rates.
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