Posted on: 19th Jul, 2007 03:03 am
Can any one explain what is All Inclusive of 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
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
Hi Sara,
I went through your comments it was informative.
Thanks a lot.....
Karthikeya M
I went through your comments it was informative.
Thanks a lot.....
Karthikeya M