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Wrap Around Mortgage |
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Wrap Around MortgageA second or junior mortgage with a face value of both the amount it secures and the balance due under the first mortgage. The mortgagee under the wrap-around collects a payment based on its face value and then pays the first mortgagee. It is most effective when the first has a lower interest rate than the second, since the mortgagee under the wrap-around gains the difference between the interest rates, or the mortgagor under the wrap-around may obtain a lower rate then if refinancing.Wrap Around Mortgage Similar MatchesMortgage deedMortgage deedThis is the agreement which explains the conditions of the mortgage (loan). It is a document to be signed by all parties to the remortgage on your property, and will be sent to HM Land Registry to register the remortgage. Alternative mortgage instrumentsAlternative mortgage instrumentsVariations of mortgage mortgage such as mortgage and variable-rate mortgages, mortgage, mortgage and several seldom-used variations. Freddie Mac (Federal Home Loan Mortgage Corporation)Freddie Mac (Federal Home Loan Mortgage Corporation)A Congressionally chartered corporation that purchases residential mortgages in the secondary market from S&Ls, banks, and mortgage bankers and securities these mortgages for sale in the capital markets. MortgageMortgage(1) To hypothecate as security, real property for the payment of a debt. The borrower (mortgagor) retains possession and use of the property. (2) The instrument by which real estate is hypothecated as security for the repayment of a loan. Repayment mortgageRepayment mortgageA mortgage where throughout the term, regular payments (usually monthly) are made to partly repay interest on the capital and to partly repay the capital itself (the amount of the loan).Initially the largest proportion of the repayments will be used to pay interest since the capital amount outstanding is at its highest value. Therefore over the initial years the capital will not reduce very much. However as the years proceed more and more of the monthly repayments will be applied to reducing the capital until towards the end of the term the large proportion will be paying off capital and a small proportion paying interest.In the event that interest rates rise then often the monthly repayments will rise accordingly. Alternatively, to keep the same monthly repayments the term will need to be extended. If interest rates fall then the reverse applies. It is usually a requirement of the lender (that is, a building society or bank) providing the mortgage that the borrower takes out life assurance so that repayment is made in the event of his/her death during the term. Further SuggestionsCapped rate mortgageFirst mortgage fixed rate mortgage Equity linked mortgage GEM (growing equity mortgage) mortgage Adjustable rate mortgage (ARM) Second Mortgage Mortgage payment protection insurance (MPPI) Self amortizing mortgage Index tracker mortgage shared appreciation mortgage Mortgage cash surplus Mortgage types General Mortgage Bond Insured Mortgage Blanket mortgage Mortgage Life Insurance Foreign currency mortgage Cap & collar mortgage Wraparound mortgage Open end mortgage adjustable rate mortgage commercial mortgage Mortgagee |
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