Finance
Which of the following best describes a 'wraparound mortgage'?
AA construction loan that converts to a permanent mortgage at project completion
BA new mortgage that encompasses an existing mortgage, with the buyer making payments to the seller who continues paying the original lender✓ Correct
CA second mortgage that wraps around the first mortgage and combines both into one payment
DA variable-rate mortgage that adjusts monthly based on market conditions
Explanation
A wraparound mortgage is a seller-financing tool in which the seller keeps the existing mortgage and creates a new, larger mortgage for the buyer. The buyer pays the seller on the new loan, and the seller remains responsible for paying the original lender.
Related Oregon Finance Questions
- An Oregon buyer is told their debt-to-income ratio (DTI) is 45%. What does this mean for their conventional loan application?
- In Oregon, real estate foreclosures most commonly occur through which process?
- Under the Homeowners Protection Act (Private Mortgage Insurance Cancellation Act), a borrower can request PMI cancellation when:
- When a lender 'sells' a loan in the secondary market, what does the original lender typically retain?
- Which government-sponsored enterprise (GSE) focuses specifically on multifamily housing and apartment building loans?
- Oregon has a mortgage tax (documentary stamp tax) on the recording of trust deeds and mortgages. The current Oregon tax is:
- What is the purpose of the 'Closing Disclosure' (CD) provided under TRID in Oregon mortgage transactions?
- A buyer in Corvallis asks about an 'assumable mortgage.' A loan with an assumable feature means:
Practice More Oregon Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oregon Quiz →