Deed of Trust

karthikeyamurugesan · Joined: 18 Jul 2007 Posts: 9 4.50 Dollars($)

Can any one explain what is All Inclusive of Deed of Trust?

sara · Posted: Thu Jul 19, 2007 3:31 am Post subject: RE: Allinclusive deed of trust

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

richosasimohan · Joined: 18 Jul 2007 Posts: 38 22.99 Dollars($)

Hi Sara,

I went through your comments it was informative.

Thanks a lot.....

Karthikeya M

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