Finance
A wraparound mortgage is BEST described as:
AA second mortgage taken out after the first mortgage is paid off
BA new mortgage that encompasses an existing mortgage, with the seller continuing to make payments on the original loan✓ Correct
CA government-backed loan with flexible terms
DA loan that adjusts annually based on market rates
Explanation
A wraparound mortgage is a form of seller financing in which the seller takes back a new mortgage from the buyer that includes (wraps around) the existing underlying mortgage. The seller continues to make payments on the original loan from the buyer's payments.
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