A line of credit extended by a financial institution to a loan originator to fund a mortgage that a borrower initially used to buy a property. The loan typically lasts from the time it is originated to when the loan is sold into the secondary market, whether directly or through a securitization.
Weekly Mortgage Applications Survey
A survey established to provide current information regarding real estate market financing. The Weekly Mortgage Applications Survey contains statistical information on the previous week's mortgage activity. The website is used by real estate investors and anlaysts to assist them to keep up-to-date on market trends and help them make decisions on the purchase, or sale, of invesment property.
The assumption of an existing mortgage by a qualified, third-party borrower from a financially distressed borrower. By having someone else assume the mortgage, the financially distressed borrower is relieved of its obligation of repaying the mortgage. The assumption must be approved by the mortgagee.
A loan that is most commonly used with property with an outstanding loan. The seller lends the buyer the difference between the existing loan and the purchase price. The buyer's periodic loan payments are sufficient to repay the existing loan as well as the seller's loan to the buyer. When the loan involves mortgage loans, it is also referred to as a wrap-around mortgage.
A type of loan that enables a borrower who is paying off an existing mortgage to obtain more financing from a second lender or seller. The new lender (typically a bank or the seller of the real property) assumes the payment of the existing mortgage and provides the borrower with a new, larger loan, usually at a higher interest rate.
A wraparound mortgage is also known as a wraparound loan, overriding mortgage, or all-inclusive mortgage.