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 bond, subordinated mortgage, junior debt, subordinated debt, subordinated debenture, subordinated 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,
- 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.
