the original mortgage balance and the new price combine to form a new mortgage. Example of a Wraparound Mortgage For example, Mr. Smith owns a house that has a mortgage balance of $50,000 at 4% ...

This is different from a fixed-rate mortgage, which locks in your rate for the entire life of your loan. For example, if you have a 30-year fixed-rate mortgage, you'd pay the same rate for all 30 ...