Real Estate Glossary

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what-if analysis
An affordability analysis that is based on a what-if scenario. A what-if analysis is
useful if you do not have complete data or if you want to explore the effect of various
changes to your income, liabilities, or available funds or to the qualifying ratios or
down payment expenses that are used in the analysis.

what-if scenario
A change in the amounts that is used as the basis of an affordability analysis. A
what-if scenario can include changes to monthly income, debts, or down payment
funds or to the qualifying ratios or down payment expenses that are used in the
analysis. You can use a what-if scenario to explore different ways to improve
your ability to afford a house.

wraparound mortgage
A mortgage that includes the remaining balance on an existing first mortgage plus
an additional amount requested by the mortgagor. Full payments on both mortgages
are made to the wraparound mortgagee, who then forwards the payments on the
first mortgage to the first mortgagee.