Glossary of Terms

Warehousing
Mortgage bankers and other financial institutions make loans that are then periodically sold on the secondary market. After the loan is made but before it is sold--the loan is said to be in the lenders warehouse.

Warranty Deed
A deed conveying the title to a property with a warranty of a clear marketable title.

Warehousing
Mortgage bankers and other financial institutions make loans that are then periodically sold on the secondary market. After the loan is made but before it is sold--the loan is said to be in the lenders warehouse.

Warranty Deed
A deed conveying the title to a property with a warranty of a clear marketable title.

Wrap-Around Mortgage
A loan arrangement whereby the existing loan is retained an a new loan is added to the property. Example: The seller sells his/her property for $200,000. The buyer puts $80,000 down. The seller has an existing loan balance of $100,000 for a remaining period of 25 years at an interest rate of 6%. The seller then makes a wraparound mortgage to the buyer, (where the seller acts as a lender) for $120,000 at 8%. The seller has to continue making payments on his old loan. They buyer has to pay the seller on the new loan. The buyer may at a later date refinance the property and close both loans.