Definitions for "Wraparound loan"
A technique which permits an existing loan to be refinanced at an interest rate between the original loan rate and the currently prevailing market rate.
A form of loan used for additional financing. Provides a much higher return to the second lender while offering the borrower a way to borrow money at less than current rates.
A loan that includes the remaining balance on an underlying first loan. Instead of having separate first and second mortgages, a wraparound loan has both.