A real estate loan in which an existing mortgage is combined with a new junior mortgage. The borrower makes full payment to the holder of the wraparound mortgage, who in turn makes the required payment to the original mortgage holder. For example, a person purchases a home from a seller who has an outstanding mortgage. Rather than take out a new mortgage to pay the seller, who will in turn pay off the existing mortgage, the buyer makes monthly payments to the seller that cover the required payment on the original mortgage plus whatever additional amount is required to service money advanced from the seller. The buyer is not required to qualify for, or absorb the expense of, a new mortgage.