A wraparound loan typically includes which of the following?

A wraparound loan is a type of financing that involves one loan "wrapping around" an existing loan. This means that it encompasses the unpaid balance of an existing mortgage along with any additional sums that the borrower may need.

In this scenario, the wraparound loan serves both to finance the remaining balance of the original mortgage and to provide additional funds, which can be used for various purposes, such as home improvements or consolidating debt. The borrower makes payments on the wraparound loan, which often covers the existing mortgage payment as well, allowing the original lender to maintain their position while potentially benefiting from a higher interest rate on the wraparound loan.

The other options do not fully capture the nature of a wraparound loan. For instance, considering only the new mortgage amount ignores the original mortgage's role, while focusing solely on additional sums borrowed overlooks the necessity of including the existing mortgage balance to form a complete wraparound structure. Furthermore, mentioning interest rate adjustments for future loans is unrelated to the fundamental concept of a wraparound loan itself.