Finance
A wraparound mortgage in Indiana involves:
ATwo mortgages on different properties
BA new, larger loan that wraps around and includes an existing underlying mortgage, with the seller (or new lender) servicing both✓ Correct
CA government-guaranteed loan
DAn adjustable-rate loan with a fixed cap
Explanation
A wraparound mortgage is a junior loan that encompasses an existing senior loan. The borrower makes payments on the wraparound; the wraparound lender makes payments on the underlying mortgage, keeping the spread.
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