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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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62% - Often

Second Mortgage


Synonyms:home equity loan, refinancing, secured loan
Filed Under: mortgages
Tags: mortgage
 

Definition of second mortgage

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

Related Terms and Acronyms:

  • combined loan-to-value (CLTV)   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   A mortgage that is the primary lien against a property.
  • home equity loan (HEL)   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   A loan that is subsequent to the claims of the holder of a prior (senior) mortgage.
  • mortgage (mtg)   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   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.
  • refinance   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   A mortgage used purchase property, often a vacation or a rental property.
  • subordinate loan   A mortgage whose priority is below that of another mortgage; i.e., a second or third mortgage or a home-equity loan.
  • tandem loan   When one asset, usually a house, has two loans taken out on it.

More Related Terms and Acronyms

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