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Loophole

Wraparound Mortgages / Land Contracts

Sell real estate keeping the existing low-rate loan in place.

Overview

Sell property to buyer via wrap: your existing (low-rate) mortgage stays, buyer pays you a higher rate on a new note that 'wraps' the old. You pocket the spread + get above-market sale price. Due-on-sale is a technical risk but rarely triggered on performing loans.

Best fit
Sellers with 3-4% loansNote investorsSub-to buyers
Estimated impact
2–5% rate spread + 5–15% price premium

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