Finance
A wraparound mortgage in Mississippi is a type of seller financing where:
AThe buyer obtains a new first mortgage
BThe seller retains their existing mortgage and creates a new, larger mortgage that 'wraps around' the existing one✓ Correct
CThe buyer assumes the seller's mortgage exactly as-is
DThe lender wraps all closing costs into the loan
Explanation
In a wraparound mortgage, the seller retains their existing mortgage and finances the buyer with a new, larger loan at a different rate. The seller collects payments from the buyer and continues paying the original lender.
Related Mississippi Finance Questions
- A Mississippi lender charges a 'prepayment penalty' on a mortgage. This means the borrower:
- An interest-only mortgage in Mississippi requires the borrower to pay:
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating in the granting of credit based on:
- Which of the following best describes a purchase money mortgage in Mississippi?
- A Mississippi buyer obtains a 30-year fixed-rate mortgage for $200,000 at 7%. The monthly principal and interest payment (using standard amortization) is approximately:
- Which of the following is a characteristic of a USDA Rural Development guaranteed loan in Mississippi?
- A Mississippi buyer borrows $200,000 at 7.5% annual interest. What is the first month's interest charge?
- The term 'amortization' in Mississippi mortgage lending means:
Practice More Mississippi Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Mississippi Quiz →