Second Mortgage
Definition
- A mortgage loan that takes priority after a first mortgage on a registered land title.
Synonyms
secured loan, home equity loan, refinancing
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.
