A wraparound mortgage is a sort of junior loan that encompasses the outstanding balance on the property’s note. The wraparound loan will be made up of the remaining principal on the original loan as well as money to cover the increased cost of buying the property. These loans are classified as secondary financing. A secured promissory note, which is a formal IOU outlining the amount due, is given to the property seller. A wraparound mortgage is also referred to as an all-inclusive mortgage, an agreement for sale, an overriding mortgage, and a wrap loan.