Second Mortgage

Definition

  • A mortgage loan that takes priority after a first mortgage on a registered land title.

Synonyms
refinancing, home equity loan, secured loan

Alternate Spellings
2nd Mortgage

Related Terms and Acronyms

  • Additional Property Definition,
    • A property that is owned by the person that is not being financed.
  • Combined Loan-to-Value (CLTV) Acronym, Very Important,
    • The connection between the unpaid principal balances of all the mortgages on a property (first and second usually) and the property's appraised value (or sales price, if it is lower).
    A term used by mortgage lenders and mortgage underwriters.
  • First Mortgage Definition, Important,
    • A mortgage that is the primary lien against a property.
  • Home Equity Loan (HEL) Acronym, Very Important,
    • A loan that can replace or be an addition to the first mortgage. Typically used as a home improvement loan.
    Also known as an Equity Take Out (ETO).
  • Junior Mortgage Definition,
    • A loan that is subsequent to the claims of the holder of a prior (senior) mortgage.
  • Mortgage (mtg) Abbreviation, Important,
    • A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • Mortgage Renewal Definition, Very Important,
    • A renewal as it pertains to the mortgage industry is defined as having an existing mortgage term end and signing a new term to continue.
  • Reconveyance Definition,
    • The transfer of title to the borrower after a mortgage has been paid fully.
  • Refinance Definition,
    • To arrange a new loan for an increased amount or better terms whereby the old loan is paid off from the proceeds of the new loan.
  • Second Home Mortgage Definition, Important,
    • A mortgage used purchase property, often a vacation or a rental property.
  • 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.
  • Tandem Loan Definition,
    • When one asset, usually a house, has two loans taken out on it.
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