Wraparound Mortgage Calculator
Report Issue
Found an issue or calculation bug in Wraparound Mortgage Calculator? Send a report with your device diagnostics included so we can resolve it quickly.
Device Info IncludedAuto-detected
OS: Detecting...
Browser: Detecting...
Screen: --
Viewport: --
To: support@toolslash.com
Guide
Wraparound Mortgage Guide
A wraparound mortgage allows a property seller to finance a buyer's purchase while keeping their lower-rate existing underlying mortgage in place.
Formulas
Buyer Payment = PMT(Wrap Rate, Wrap Term, Wrap Loan)
Underlying Payment = Senior Mortgage P&I
Net Spread = Buyer Payment - Underlying PaymentFrequently Asked Questions
- What is the primary risk of a wraparound mortgage?
- The existing senior mortgage lender may enforce the due-on-sale clause if title transfers without their written consent.
- How does the seller profit on a wrap?
- The seller earns interest rate arbitrage between the higher wrap rate charged to the buyer and the lower interest rate on the underlying loan.