Finance
In Michigan, a 'wraparound mortgage' involves:
AA mortgage that covers multiple properties
BA new, larger mortgage that 'wraps around' an existing mortgage, with the new lender continuing to pay the original underlying mortgage✓ Correct
CA mortgage product for manufactured homes
DA mortgage that adjusts to market conditions annually
Explanation
A wraparound mortgage is a form of seller financing where the seller takes a new mortgage from the buyer that 'wraps' the existing underlying mortgage. The seller continues making payments on the original loan while collecting payments from the buyer on the larger wrap.
Related Michigan Finance Questions
- What is the primary purpose of Private Mortgage Insurance (PMI) in Michigan conventional loans?
- In Michigan, a 'mortgage broker' differs from a 'mortgage banker' because:
- In Michigan, an 'interest-only loan' means the borrower:
- Michigan's state real estate transfer tax rate is:
- A Michigan borrower's debt-to-income (DTI) ratio is important to lenders because it measures:
- In Michigan, a conventional conforming loan is one that:
- In Michigan, 'points' paid at mortgage closing are:
- Which of the following is a characteristic of a VA loan available to eligible Michigan veterans?
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →