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.
