Subordinate Loan

Definition

  • A mortgage with priority that is below that of another mortgage. This includes second or third mortgages, or home-equity loans.

Synonyms
subordinated loan, subordinated debt, junior debt, subordinated mortgage, subordinated bond, subordinated debenture

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,
    • 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.
  • 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.
  • Wraparound Mortgage Definition,
    • A refinanced home loan in which the balances on all mortgages are combined into one loan.
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