Finance
A 'wraparound mortgage' in NC involves:
AA second mortgage that encircles the first mortgage
BA new loan that includes the balance of an existing loan, with the new lender servicing the original underlying loan✓ Correct
CA loan with no down payment requirement
DA floating rate loan tied to the prime rate
Explanation
A wraparound mortgage is a junior loan that includes (wraps around) the balance of an existing first mortgage; the new lender continues to service the original loan while collecting a higher rate from the borrower.
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