Financing

Wraparound Mortgage

New mortgage that 'wraps' the existing mortgage; buyer pays seller, seller pays underlying loan.

Reviewed 9 August 2026 by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Layered seller financing — risky because the underlying loan still exists.

Examples

Buyer pays $2,000/mo to seller; seller pays $1,500 to original lender.

Common mistakes

Wrapping a loan with strict due-on-sale enforcement.

Wraparound Mortgage

Plain-English explanation

Examples

Common mistakes

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