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What is a Wrap Around Mortgage?

A wrap around mortgage is a financing option that allows a buyer to purchase a property with a twist: the seller holds onto their existing mortgage and the seller finances the difference to the buyer with a new loan. It essentially "wraps" the existing loan into a new one for the buyer.

Overall, wraparound mortgages can be a niche option that might benefit some buyers in specific situations. However, due to the potential drawbacks, it's crucial to carefully consider the pros and cons, understand the terms thoroughly, and consult with a financial advisor before entering into a wraparound agreement.

Would you like to learn more about Real Estate? Have you ever wanted to become a New Jersey Real Estate Salesperson License holder? Want to know more about being a New Jersey Licensed Real Estate Agent? Click on the link for the schedule of our upcoming classes for Real Estate:

Alleyway festooned with red geraniums
Alleyway festooned with red geraniums

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