Definition of underlying mortgage

first mortgage when there is a wraparound mortgage. A wraparound mortgage for $100,000 might include a $60,000 underlying first mortgage in its balance, so the additional money provided by the wrap is $40,000.

refers to the first mortgage when there is a wraparound mortgage.

Example: A wraparound for $100,000 includes a $60,000 underlying mortgage in its balance, so the additional funds provided by the wrap are $40,000.