Wraparound Mortgage

Definition

  • A refinanced home loan in which the balances on all outstanding mortgages are amalgamated into a single loan.

Synonyms
encompass, engulf, enclose, absorb, incorporate

Related Terms and Acronyms

  • Debt Consolidation Definition,
    • The replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. It's also called a consolidation loan. CanEquity has access to Canada's best debt consolidation products, for more info about debt consolidation see our debt consolidation page.
  • Junior Mortgage Definition,
    • A loan that is subsequent to the claims of the holder of a prior (senior) mortgage.
  • Loan Servicing Definition,
    • Supervising a loan after it has been made. This could involve collecting payments, keeping accounting records, computing interest and principal, etc.
  • Mortgage (mtg) Abbreviation, Important,
    • A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • Refinance Definition,
    • To arrange a new loan for an increased amount or better terms whereby the old loan is paid off from the proceeds of the new loan.
  • Refinancing Definition,
    • The act of paying off one mortgage with another mortgage to take advantage of lower interest rates. Refinancing is also used to transform equity into cash for vacations, home improvements, or for consolidating debt.
  • Subordinate Loan Definition,
    • A mortgage whose priority is below that of another mortgage; i.e., a second or third mortgage or a home-equity loan.
  • Umbrella Mortgage Definition,
    • A specific arrangement where one document encompasses one or more already existing mortgages registered on the same property. The mortgagee is responsible for remission of payment(s), to lender(s), while the mortgagor makes one payment to the mortgagee. Also referred to as a wraparound.
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