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wraparound definition - finance
A financing device that allows an existing loan to be refinanced and new money to be loaned at an interest rate that falls between the old interest rate and current market rates. The lender wraps (or combines) the remainder of the old loan with the new loan at the new interest rate.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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