 sara
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Joined: 05 Jul 2006
Posts: 1679
Location: New Brunswick, New Jersey
315.11 Dollars($)
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 Posted: Thu Jul 19, 2007 3:31 am Post subject: RE: Allinclusive deed of trust |
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Hi karthik,
Welcome to the forums.
An allinclusive deed of trust is similar to a wrap around mortgage. This is basically a home loan which includes in its balance an already existing home loan. Instead of going for a first as well as second mortgage, a borrower can carry on with a wrap around loan.
For instance, if you have an existing first mortgage worth $100,000 at 6.5% rate of interest. You may require a second loan worth $40,000 at 9% rate of interest. Now instead of taking out a second loan, you can consider a wraparound loan for $140,000 at 8% interest rate. In this case, you will have to make one payment on the $140,000 wraparound loan and the wraparound lender will forward this payment to the first lender as a part of the entire payment on the first loan itself.
To know more on Wraparound Mortgage, refer to the section on this topic.
Take Care |
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