junior mortgage
Definition
Second (or third) mortgage that is subordinate to the previous (senior) mortgages on the same property. In case of a default by the mortgagor (borrower), the senior mortgagee(s) will have to be paid off first, before the junior mortgagee(s) can get any money from the proceeds of the mortgaged property's sale. For this reason, junior mortgage interest rates are usually higher.
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