Finance
In Rhode Island, 'wraparound mortgage' financing means:
AA second mortgage that wraps around the exterior of the property
BA new mortgage that includes the balance of an existing mortgage, with the new lender collecting payments and continuing to pay the original lender✓ Correct
CA government loan program for first-time buyers
DA mortgage with a balloon payment due after 5 years
Explanation
A wraparound mortgage is a seller-financing arrangement where the seller creates a new loan at a higher amount (wrapping around the existing mortgage). The buyer pays the seller on the new loan; the seller continues paying the original lender.
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