second mortgage
Junior home loan
A second mortgage is a loan taken against a property that already has an existing mortgage, using the home's equity as collateral.
It ranks behind the first mortgage in priority—if the property is sold or foreclosed, the original lender gets paid first.
Second mortgages typically carry higher interest rates because of this increased risk to the lender.
They took out a second mortgage to pay for their daughter's college tuition.
One lower in rank
- lienClaim securing debt
- home equity loanDebt using house as collateral
- HELOCHome-secured revolving credit
- secured debtLoan backed by assets
collateral · lender · borrower · principal · interest rate · monthly payments · loan-to-value · credit score
Lower position in hierarchy
- underwaterBelow the surface
- defaultPreset standard option
- foreclosureLender seizes mortgaged property
- delinquencyCriminal or neglectful behavior
arrears · negative equity · overleveraged · prepayment penalty · variable rate · rate adjustment · balloon payment · predatory lending
Ownership portion of residence
- cash-outConvert assets to currency
- appreciationRecognition of worth
- property valueMonetary worth of real estate
- appraisalEstimation of worth
valuation · net worth · homeownership · leverage · home improvement · debt consolidation · equity stake · asset
subordinate
One lower in rank
- lienClaim securing debt
- home equity loanDebt using house as collateral
- HELOCHome-secured revolving credit
secured debt · collateral · lender · borrower · principal · interest rate · monthly payments · loan-to-value · credit score · debt-to-income
subordination
Lower position in hierarchy
- underwaterBelow the surface
- defaultPreset standard option
- foreclosureLender seizes mortgaged property
delinquency · arrears · negative equity · overleveraged · prepayment penalty · variable rate · rate adjustment · balloon payment · predatory lending · financial hardship
home equity
Ownership portion of residence
- cash-outConvert assets to currency
- appreciationRecognition of worth
- property valueMonetary worth of real estate
appraisal · valuation · net worth · homeownership · leverage · home improvement · debt consolidation · equity stake · asset · collateralization
- debtdebt, creditor, owe, debtor, lender
- debtscredit card debt, car loan, student loan, loans, bank loan
- real estatehouse, home, apartment, property, sale
- mortgageshome loan, home loans, down payment, refinancing, refinance
- home loanshome equity, home improvement loan, fixed rate loan, fixed-rate loan, variable rate loan
- Home Equityhome equity loan, home equity line, HELOC, equity line, LTV
second mortgageunsecured loan
Debt lacking pledged property
personal loan · unsecured debt · credit card debt · signature loan
second, mortgage, secondly, secondary, secondarily, mortgages, mortgaged, mortgaging, mortgagee