Wraparound Mortgage Calculator
Analyze wrap-around financing scenarios for sellers and buyers.
Existing (Underlying) Loan
Wraparound Loan Terms
Rate spread: 2.50%
Payment Flow Analysis
Buyer Pays
$1,796
→
Seller Keeps
$596
→
To Lender
$1,200
Seller Benefits
Monthly Spread$596
Annual Spread$7,156
Immediate Equity (Down)$30,000
Deferred Equity$90,000
Buyer Position
Wrap Loan Amount$270,000
Monthly Payment$1,796
LTV90.0%
Total Interest$376,674
Seller's Monthly Profit
Monthly Spread
$596
Annual
$7,156
Rate Spread
2.50%
Seller's Total Equity
Sale Price$300,000
Existing Balance-$180,000
Total Equity$120,000
Due-on-Sale Risk
Most mortgages have a due-on-sale clause. The lender could call the loan due if they discover the wrap.
- Consult with attorney
- Consider land trust
- Have exit strategy
Wraparound Benefits:
- • Seller earns interest spread
- • Buyer gets easier financing
- • Preserves low-rate loan
- • Flexible terms possible