- A mortgage that is subsequent to the claims of the holder of a prior (senior) mortgage.
second mortgage, high interest debt, home loan, secured loan
Related Terms and Acronyms
- Additional Property — Definition,
- A property that is owned by the person that is not being financed.
- First Mortgage — Definition, Important,
- A mortgage that is the primary lien against a property.
- Home Equity Loan (HEL) — Acronym, Very Important,
➥ Also known as an Equity Take Out (ETO).
- A loan that can replace or be an addition to the first mortgage. Typically used as a home improvement loan.
- Second Home Mortgage — Definition, Important,
- A mortgage used purchase property, often a vacation or a rental property.
- Second Mortgage — Definition, Important,
- A mortgage which ranks after a first mortgage in priority on a registered land title.
- Subordinate Loan — Definition,
- A mortgage whose priority is below that of another mortgage; i.e., a second or third mortgage or a home-equity loan.
- Umbrella Mortgage — Definition,
- A specific arrangement where one document encompasses one or more already existing mortgages registered on the same property. The mortgagee is responsible for remission of payment(s), to lender(s), while the mortgagor makes one payment to the mortgagee. Also referred to as a wraparound.
- Wraparound Mortgage — Definition,
- A refinanced home loan in which the balances on all mortgages are combined into one loan.