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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.


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Alleyway festooned with red geraniums
Alleyway festooned with red geraniums

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