Wrap-around mortgages are typically used to:

Wrap-around mortgages are designed to combine existing financing with new financing, allowing the buyer to take over the existing mortgage while simultaneously obtaining a new loan that "wraps around" the original loan. This arrangement can be beneficial for both the seller and the buyer. The seller continues to receive payments on the original mortgage, while the buyer can acquire the property without needing a traditional mortgage from a bank.

This type of financing is particularly advantageous in scenarios where interest rates are rising or where a buyer might have difficulty qualifying for a new loan due to credit issues. The wrap-around mortgage provides a way to leverage the existing loan terms to ease the home buying process, reducing the need for a full cash payoff on the existing mortgage.

The other answer choices refer to different financial arrangements; for example, refinancing is aimed at improving terms on an existing mortgage rather than creating a new combined structure. Bundling multiple loans isn't the same as a wrap-around mortgage because it involves new financing rather than utilizing existing loans in conjunction. Similarly, while no down payment options can exist within various mortgage types, this is not a defining characteristic of wrap-around mortgages.